An Effective Tabu Search Based Algorithm for Integrated Pickling-Rolling Scheduling and Coil Shuffling in Iron and Steel Industry

In classical approach, production scheduling and warehouse logistics operations are investigated separately while making production scheduling without considering the warehouse logistics operations. Unlike classical approach, this paper studies an integrated production scheduling and coil shuffling problem, which is to create a production scheduling with considering production scheduling constraints and shuffling logistics operation. The problem is motivated by pickling-rolling practical production in the steel industry where selection and sequence of coils need not only considering the changeovers cost between adjacent coils, but also coil shuffling cost in retrieving coil. The objective is to minimize the overall production scheduling cost and shuffling cost. A tabu search based algorithm is developed where a two-phase heuristics is proposed to act the initial feasible solutions of tabu search. Computational results show that integrated approach of production scheduling and coil shuffling may reduce the total cost by 17% on average, compared with separate approach.