Journal article
An Application of Stochastic Programming in Steel Production
RBER, review of business and economic research, Vol.18(3), pp.58-70
01 Apr 1983
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
The management of a steel plant in eastern Pennsylvania was faced with the problem of high raw materials cost (about $4.7 million a month), which was a substantial part of the company's total variable cost. Competition from Japanese and European steel manufacturers made it imperative to reduce such costs to maintain a competitive position. The formation and application of a stochastic linear programming model in meeting this objective is described. A simple but effective iterative approach was developed for solving a real life production mix problem with some stochastic parameters. The procedure proved successful in practice and greatly increased the plant management's confidence in using quantitative techniques for solving operational problems.
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Details
- Title
- An Application of Stochastic Programming in Steel Production
- Creators
- Avijit Banerjee
- Publication Details
- RBER, review of business and economic research, Vol.18(3), pp.58-70
- Publisher
- University of New Orleans, Business and Economic Research
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems); Bennett S. LeBow College of Business; Drexel University
- Identifiers
- 991019551906704721
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