A Linear Programming Model of Integrated Iron and Steel Production

Abstract

Integrated steel mills usually have a choice over the use of various materials and production processes. Different ores may be used in the production of iron; steel scrap and iron can be used in different proportions in the production of steel. The economical usage rate of all materials is a function of numerous variables, among which the market price of some materials, notably of various grades of steel scrap, fluctuates and therefore requires a periodic determination of the economical usage rate. This is a typical problem for programming. The paper presents a mathematical formulation of the stages of iron and steel production to determine the optimal (least cost) rate of input of materials. The models of the various stages of production are connected to form a “master model” of an integrated steel mill.