Resource planning for a rare metals corporation using mixed integer goal programming and resource planning and management system Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/7d278z13g

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  • A system's analysis study utilizing Resource Planning and Management System network methodology, integer programming, and goal programming is presented. The integrated approach is developed and applied to the rare metals production process of the Oregon Metallurgical Corporation (OREMET). As defined by OREMET management, optimization of the production process required the consideration of the following six objectives, goals, and integer requirements. 1) Meeting of given demand levels 2) Purchases from favored suppliers 3) Meeting of target metallurgical alloy compositions 4) Achievement of given raw material input ratios 5) Profit maximization 6) Integerization of shift and overtime options to reflect their mutual exclusiveness Utilizing the *REXX linear programming software package, the solution for the 240 structural and 181 logical variables in the model were derived. The first two goals were met entirely while the second two could not be met. Profit maximization attained a level of $333, 306 (over a one month time horizon). The loss in profit resulting from the optimization of the first four goals was computed from the dual values of the goal constraints generated during the profit maximization computer run and from separate sensitivity runs made necessary by changes in the bases. The solutions derived were found useful by the OREMET management and implementation of the analysis technique as a permanent information and decision tool is contemplated. Suggestions for improvements to the OREMET model, evaluation of the advantages and disadvantages of the analysis approach, and recommendations for future research are discussed.
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