A robust optimization approach to steel grade design problem subject to uncertain yield and demand

Qi Zhang, Shixin Liu and MengChu Zhou

International Journal of Production Research, 2023, vol. 61, issue 15, 5176-5192

Abstract: This work formulates and investigates a steel grade design problem (SGDP) arising from a production process of steelmaking continuous casting. For the first time, we consider uncertain yield and demand in SGDP and construct a two-stage robust optimisation model accordingly. Then, we propose an enhanced column-and-constraint generation algorithm to obtain high-quality solutions. By exploiting the problem characteristics, we first use a Lagrangian relaxation method to decompose SGDP into multiple subproblems and then apply a standard column-and-constraint generation algorithm to solve the latter. At last, we test the proposed algorithm by extensive instances constructed based on actual production rules of a steelmaking shop. Numerical results show that it can effectively solve large-scale SGDPs. The obtained plan is better than those obtained by a commonly-used and standard column-and-constraint generation algorithm.

Date: 2023
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DOI: 10.1080/00207543.2022.2098872

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