A raw material storage yard allocation problem for a large-scale steelworks

This paper addresses a raw material storage yard allocation problem at a large-scale steelworks. At the steelworks, raw materials such as coal and iron ore are imported by ships from overseas, discharged from the ships by unloading equipment, and transported into and stored in the yards. The stored materials then are transported and used in the production equipment such as steel mills. The yard allocation decision, i.e., where to store the materials, determines the travel distance of the materials as well as the storage efficiency of the yards. Here, the yard allocation problem is solved using a mixed integer programming model. The solution compares favorably with the current practice of the steelworks.