Optimal Selection of Ingot Sizes Via Set Covering

In 1984, Bethlehem Steel Corporation installed a new ingot mold stripping facility at its Bethlehem Plant that is capable of handling taller ingots. In order to take maximum advantage of this new facility, we developed a two-phase, computer-based procedure for selecting optimal ingot and internal ingot mold dimensions. Phase I of this procedure generates feasible ingot and internal ingot mold dimensions consistent with both the new stripper's capability and with mill constraints. Phase II then uses a set covering approach to select the optimal ingot and internal ingot mold sizes from among the feasible sizes generated. After analyzing the model, we recommended six new rectangular mold sizes to replace seven existing sizes. To date, implementation of these new ingot and mold sizes is proceeding smoothly and realizing the projected cost reduction benefits.