Model for the optimization of direct costs in steel production

Abstract

Objective: To design a model for optimizing direct material costs in the production of carbon steels, which allows mathematically supporting decision-making regarding the composition of the castings and the requirement of materials.
Methods and techniques: Statistical methods, linear and computational programming.
Main results: The identification of the concepts of direct costs
that significantly impact the production processes of the Cuban
steel industry and the correct statistical estimation of their parameters, allowed the design of a linear programming model
suitable for the mathematical treatment of material cost optimization direct for the production of steel.
Conclusions: The linear programming model designed provides an adequate structure for the mathematical treatment of the variables, parameters and restrictive elements associated with the optimization of direct material costs in steel production. The comparative tests carried out allowed us to verify the relevance of the implementation of the proposed model for the optimization of production costs in the Cuban steel industry.