Productivity Improvement in a Steel Industry using Supply Chain Management Technique
Cost reduction is one of the methods applied for improving the productivity of organizations. In productivity literature, particularly in nonparametric methods, cost reduction related methods are regarded as input oriented models. This paper presents a Supply Chain Management (SCM) model in which pu...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Tehran
2013-06-01
|
| Series: | International Journal of Mining and Geo-Engineering |
| Subjects: | |
| Online Access: | http://ijmge.ut.ac.ir/article_50090_b9f16c46d680f8f3e50439df33802944.pdf |
| _version_ | 1811304676958666752 |
|---|---|
| author | Mohammad Reza Soltani Ahmad Reza Sayadi Masoud Monjezi Mohammad Hayati |
| author_facet | Mohammad Reza Soltani Ahmad Reza Sayadi Masoud Monjezi Mohammad Hayati |
| author_sort | Mohammad Reza Soltani |
| collection | DOAJ |
| description | Cost reduction is one of the methods applied for improving the productivity of organizations. In productivity literature, particularly in nonparametric methods, cost reduction related methods are regarded as input oriented models. This paper presents a Supply Chain Management (SCM) model in which purchasing iron ore and coke from different resources, along with production and distribution of steel products were investigated to improve the productivity of a steel making plant in Iran. The model was designed based on a single objective concept with a focus on total cost minimization. The constraints of the model consisted principal restriction concerning mines, coke plant and products. The model was implemented in steel factories (blast furnace) affiliated with Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).The results showed that the priority for providing iron ore should be given to Iran Central Iron Ore Company (ICIOC) which has enough production capacity to satisfy the required ores. The results further suggested that at the best productivity condition, Isfahan steel plant should focus on the beam and bar production. The other plants, i.e. Zagros plant, should focus on L-beam and slab and finally Meibod steel plant should concentrate on slab production. It was also showed that the coke production plants cannot supply the required tonnage of the steel plants. Therefore, some new plants should be established to achieve self-sufficiency in this industry. This model can be used as a support tool for decision-makers at strategic and tactical decision levels. |
| first_indexed | 2024-04-13T08:11:32Z |
| format | Article |
| id | doaj.art-7585b89383e1439fbfaf012a71820aa1 |
| institution | Directory Open Access Journal |
| issn | 2345-6930 2345-6949 |
| language | English |
| last_indexed | 2024-04-13T08:11:32Z |
| publishDate | 2013-06-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | International Journal of Mining and Geo-Engineering |
| spelling | doaj.art-7585b89383e1439fbfaf012a71820aa12022-12-22T02:54:59ZengUniversity of TehranInternational Journal of Mining and Geo-Engineering2345-69302345-69492013-06-01471515950090Productivity Improvement in a Steel Industry using Supply Chain Management TechniqueMohammad Reza Soltani0Ahmad Reza Sayadi1Masoud Monjezi2Mohammad Hayati3PhD Student, Tarbiat Modares University, Tehran, IranAssociate professor, Tarbiat Modares University, Tehran, IranAssociate professor, Tarbiat Modares University, Tehran, IranMsc Student, Tarbiat Modares University, Tehran, IranCost reduction is one of the methods applied for improving the productivity of organizations. In productivity literature, particularly in nonparametric methods, cost reduction related methods are regarded as input oriented models. This paper presents a Supply Chain Management (SCM) model in which purchasing iron ore and coke from different resources, along with production and distribution of steel products were investigated to improve the productivity of a steel making plant in Iran. The model was designed based on a single objective concept with a focus on total cost minimization. The constraints of the model consisted principal restriction concerning mines, coke plant and products. The model was implemented in steel factories (blast furnace) affiliated with Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).The results showed that the priority for providing iron ore should be given to Iran Central Iron Ore Company (ICIOC) which has enough production capacity to satisfy the required ores. The results further suggested that at the best productivity condition, Isfahan steel plant should focus on the beam and bar production. The other plants, i.e. Zagros plant, should focus on L-beam and slab and finally Meibod steel plant should concentrate on slab production. It was also showed that the coke production plants cannot supply the required tonnage of the steel plants. Therefore, some new plants should be established to achieve self-sufficiency in this industry. This model can be used as a support tool for decision-makers at strategic and tactical decision levels.http://ijmge.ut.ac.ir/article_50090_b9f16c46d680f8f3e50439df33802944.pdfproductivitySupply chain managementlinear programmingsteel industry |
| spellingShingle | Mohammad Reza Soltani Ahmad Reza Sayadi Masoud Monjezi Mohammad Hayati Productivity Improvement in a Steel Industry using Supply Chain Management Technique International Journal of Mining and Geo-Engineering productivity Supply chain management linear programming steel industry |
| title | Productivity Improvement in a Steel Industry using Supply Chain Management Technique |
| title_full | Productivity Improvement in a Steel Industry using Supply Chain Management Technique |
| title_fullStr | Productivity Improvement in a Steel Industry using Supply Chain Management Technique |
| title_full_unstemmed | Productivity Improvement in a Steel Industry using Supply Chain Management Technique |
| title_short | Productivity Improvement in a Steel Industry using Supply Chain Management Technique |
| title_sort | productivity improvement in a steel industry using supply chain management technique |
| topic | productivity Supply chain management linear programming steel industry |
| url | http://ijmge.ut.ac.ir/article_50090_b9f16c46d680f8f3e50439df33802944.pdf |
| work_keys_str_mv | AT mohammadrezasoltani productivityimprovementinasteelindustryusingsupplychainmanagementtechnique AT ahmadrezasayadi productivityimprovementinasteelindustryusingsupplychainmanagementtechnique AT masoudmonjezi productivityimprovementinasteelindustryusingsupplychainmanagementtechnique AT mohammadhayati productivityimprovementinasteelindustryusingsupplychainmanagementtechnique |