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Operations Research Transforms Baosteel’s Operations

Author

Listed:
  • 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)

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.

Suggested Citation

  • Lixin Tang & Ying Meng & Gongshu Wang & Zhi-Long Chen & Jiyin Liu & Guofen Hu & Lijun Chen & Bo Zhang, 2014. "Operations Research Transforms Baosteel’s Operations," Interfaces, INFORMS, vol. 44(1), pages 22-38, February.
  • Handle: RePEc:inm:orinte:v:44:y:2014:i:1:p:22-38
    DOI: 10.1287/inte.2013.0719
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    References listed on IDEAS

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    1. Jayant R. Kalagnanam & Milind W. Dawande & Mark Trumbo & Ho Soo Lee, 2000. "The Surplus Inventory Matching Problem in the Process Industry," Operations Research, INFORMS, vol. 48(4), pages 505-516, August.
    2. Tang, Lixin & Wang, Gongshu, 2008. "Decision support system for the batching problems of steelmaking and continuous-casting production," Omega, Elsevier, vol. 36(6), pages 976-991, December.
    3. Tang, Lixin & Liu, Jiyin & Rong, Aiying & Yang, Zihou, 2001. "A review of planning and scheduling systems and methods for integrated steel production," European Journal of Operational Research, Elsevier, vol. 133(1), pages 1-20, August.
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    Cited by:

    1. Torres, Nelson & Greivel, Gus & Betz, Joshua & Moreno, Eduardo & Newman, Alexandra & Thomas, Brian, 2024. "Optimizing steel coil production schedules under continuous casting and hot rolling," European Journal of Operational Research, Elsevier, vol. 314(2), pages 496-508.

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