Operations Research Transforms Baosteel’s Operations

Lixin Tang (), Ying Meng (), Gongshu Wang (), Zhi-Long Chen (), Jiyin Liu (), Guofen Hu (), Lijun Chen () and Bo Zhang ()
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Lixin Tang: The Logistics Institute of Northeastern University, Shenyang, 110819 China
Ying Meng: The Logistics Institute of Northeastern University, Shenyang, 110819 China
Gongshu Wang: The Logistics Institute of Northeastern University, Shenyang, 110819 China
Zhi-Long Chen: University of Maryland, College Park, Maryland 20742
Jiyin Liu: Loughborough University, Loughborough, LE11 3TU United Kingdom
Guofen Hu: Shanghai Baoshan Iron and Steel Complex, Shanghai, 201900 China
Lijun Chen: Shanghai Baoshan Iron and Steel Complex, Shanghai, 201900 China
Bo Zhang: Shanghai Baoshan Iron and Steel Complex, Shanghai, 201900 China

Interfaces, 2014, vol. 44, issue 1, 22-38

Abstract: Shanghai Baoshan Iron and Steel Complex (Baosteel) is China’s largest and the world’s third-largest steel company. In 2005, our research team was tasked with developing advanced operations research-based planning tools to improve the operational efficiency of Baosteel’s Shanghai plant. In the following six years, we developed novel optimization algorithms and tailored metaheuristics, and implemented four decision support systems (DSSs) to replace the manual planning methods at the Shanghai plant. The DSSs have brought scientific operations management to Baosteel and transformed the plant’s production and final-product delivery operations. Baosteel estimates that from 2007 to 2012, they provided a cumulative economic benefit of 77 million. Based on their current usage at this plant, they also estimate that these DSSs will continue to provide an annual economic benefit of 20 million, which represents a 17 percent improvement of Baosteel’s information technology and operations management capability. They have also reduced Baosteel’s carbon dioxide emissions by 585,770 tons annually.

Keywords: iron and steel industry; production planning; batch planning; logistics scheduling; integer programming; branch and price; metaheuristics; decision support system (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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