Abstract
During the last half decade, the metal industry has been in a harsh situation seeing their profit margins squeezed to an extreme. Many companies have been forced to close down furnaces and plants. To help a major metal producing company manage this process, we developed a strategic mixed integer programming model. The main decisions addressed by the model involve the future plant structure and production capacities, the production portfolio at each plant and the by-product production. Here, we present the underlying MIP-model and give computational results. In addition, we show how the valuable by-product production can have impact on the optimal supply chain design.
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Christiansen, M., Grønhaug, R. (2007). The Impacts of By-products on Optimal Supply Chain Design. In: Hasle, G., Lie, KA., Quak, E. (eds) Geometric Modelling, Numerical Simulation, and Optimization. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-68783-2_15
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DOI: https://doi.org/10.1007/978-3-540-68783-2_15
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