Cost Control of Material Substitution in Steel Enterprise

Abstract

For dealing with cost control problems of material substitution in steel production process in make-to-order steel enterprise, we established the substitution rules of material substitution and built up the cost optimized controlling model for material substitution. The objective function of this model was to minimize the total cost of both stock and task lateness. We made use of Operations Research and Genetic Algorithm to solve this model. Finally, we also conducted the application research for the model and algorithm, and its promising future was revealed.