The Impacts of By-products on Optimal Supply Chain Design

Marielle Christiansen () and Roar Grønhaug ()
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Marielle Christiansen: Norwegian University of Science and Technology, Department of Industrial Economics and Technology Management
Roar Grønhaug: Norwegian University of Science and Technology, Department of Industrial Economics and Technology Management

A chapter in Geometric Modelling, Numerical Simulation, and Optimization, 2007, pp 497-520 from Springer

Abstract: 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.

Keywords: Facilities/Equipment Planning: Capacity Expansion; Design; Location; Industries: Mining/Metals; Manufacturing: Strategy (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-68783-2_15

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DOI: 10.1007/978-3-540-68783-2_15

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