A linear programming model for integrated steel production and distribution planning

Develops a linear programming model for integrated production planning based on the practice of a major Canadian steel making company. Considers the entire planning activity in the company as an integrated process involving a number of closely related sub‐functions, such as raw material purchasing, semi‐finished product purchasing and production, and capacity allocation, as well as finished product production and distribution. The mathematical programming model takes into account production costs, product throughput rates, customer demands, sales prices and facility capacities for optimal production planning. Presents a numerical example based on realistic system structure and practical planning data to illustrate the model. Computation results and analysis show that the integrated methodology is a feasible and practical approach for steel production planning.