Multi-objective mathematic programming model and algorithm for production planning in steel and iron enterprise

As iron and steel products demand becomes increasingly diversified and batch reduced, make-to-order production has gradually satisfied the demand of modern iron and steel enterprises. It is significant for optimization of the make-to-order production planning to guarantee punctual delivery considering inventory, production capacity, processes and product specification. A multi-objective mixed integer nonlinear programming (MINLP) model is formulated to optimize the production, and a hybrid particle swarm optimization algorithm is developed to solve the model. A case study based on the order data of a steel and iron enterprise is presented. Compared with the optimization strategy upon particle swarm optimization and manual scheduling, the proposed optimization model and strategy effectively reduce losses caused by back order, inventory storage and unbalanced production capacity, and provide a reference and guidance for the operation.