In this paper, we investigate the scheduling policies in the iron and steel industry, and in particular, we formulate and propose a solution to a complicated problem called skin pass production scheduling in this industry. The solution is to generate multiple production turns for the skin pass coils and, at the same time, determine the sequence of these turns so that productivity and product quality are maximized, while the total production scheduling cost, including the costs of tardiness, flow of material, and the changeover cost between adjacent and non-adjacent coils, is minimized. This study has been prompted by a practical problem in an international steel company in Iran. In this study, we present a new mixed integer programming model and develop a heuristic algorithm, as the commercial solvers would have difficulty in solving the problem. In our heuristic algorithm, initial solutions are obtained by a greedy constraint satisfaction algorithm, and then a local search method is developed to improve the initial solution. The experimental results tested on the data collected from the steel company show the efficiency of the proposed heuristic algorithm by solving a large-sized instance in a reasonable computation time. The average deviation between the manual method and the heuristic algorithm is 30%. Also, in all the components of the objective function, the algorithm performs better compared to the manual method. The improved values are greater than 15. In addition, we develop a commercial decision support system for the implementation of the proposed algorithm in the steel company.
An application of principal component analysis and logistic regression to facilitate production scheduling decision support system: an automotive industry case