Raw Material Inventory And Configuration Optimization In Iron And Steel Industry

The raw material yard of iron and steel company is the central place of all the raw materials. Those materials are stocked and processed in the yard. It is required high-quality raw materials be provided to blast furnace timely and accurately so as to ensure continuous normal production. Based on analysis of the logistics of raw materials processes, the paper refines several logistics optimization problems. This paper focuses on the raw material inventory optimization problem and configuration optimization of raw material.Since the inventory of raw material covers more than70%of circulating capital, proper inventory strategy is necessary for normal and continuous production, too much or too little inventory can cause unnecessary economic losses. Reducing inventory costs of raw materials will bring considerable economic benefits for iron and steel enterprises, in which the quantities of raw materials are very huge. Due to the limitation of raw material yard space, the use of space should be maximized, so as to make a more reasonable distribution of raw materials, to achieve the maximum economy of spaceThe main work of this paper can be concluded as follows:(1) Modeling and solving of raw material inventory problem:Inventory refers to the raw materials beyond the current production demand. The raw materials inventory has the characteristics of variety, large number, taking up large amount of money and not allowed to be out of stock and so on. Upon the analysis of the characteristics of the production requirements and inventory of raw material, the paper builds a MILP model minimizing the inventory costs, which aims at optimizing the inventory levels of various raw materials. Considering the model characteristics and the simple characteristics of differential evolution algorithm, the paper proposes the differential evolution algorithm to solve the problem. By the calculating of the practical data and comparing with optimization methods, the validity of the model and algorithm is proved.(2) Modeling and solving of raw material configuration problem:The raw material features make the raw material logistics distribution problem more complicated. In the mathematical model established, the objective is to reduce costs and improve the utilization of raw materials. Considering the requirements of the raw material configuration and the features of the model, the paper proposes the differential evolution algorithm to solve the problem. The validity and the feasibility of the model and algorithm are proved by experiment.(3) Designing and developing of the logistics management optimization system: Due to the complexity and variability of the logistic processes in the raw material yard, the inefficiency of manual reporting and scheduling management, and the unsatisfactory results in saving cost, the optimization system of raw material yard in iron and steel industry has been designed and developed, which takes into account the actual situation of raw material yard. The system can not only realize the management of all the operational processes, but also optimize the logistics process.