A multiple arc network model of production planning in a steel mill

The problem of production planning in a steel mill with an objective of maximising capacity utilisation is formulated as a maximal flow problem in a Multiple Arc Network (MAN). The production is usually planned against customer orders, and different customers are assigned different priorities. The model takes into account the priorities assigned to the customers and also the order balance position. An algorithm is presented for solving the MAN formulation of production planning wth customer priorities in a steel mill. Numerical examples are presented to illustrate the application of the algorithm.