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Research on Optimizing the Production Logistics of Steel Enterprise

Author: LiuChuanPeng
Tutor: XuLing
School: Southwest Jiaotong University
Course: Logistics Engineering
Keywords: steel enterprise production logistics optimization
CLC: F252
Type: Master's thesis
Year: 2012
Downloads: 298
Quote: 0
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Abstract


As a basic industry of the national economy, steel industry plays a crucial role in the national economic development; however, the cost of steel production is high and the steel has been overproduced, making steel industry being low-profit. It is more and more difficult for the steel industry to obtain competitive advantage only by reducing the production cost, so a new source of profit is in urgent need. Honored as "a third source of profit", modern logistics now has gradually become an important object for steel enterprises to study.As one of the key links of logistics of steel enterprise, production logistics is a key factor to reduce cost and increase profit of steel industry. Therefore, this paper takes production logistics of steel industry as the study object and explores the ways to optimize production logistics. First of all, the thesis analyzes the factors that influence production logistics of steel industry through its characteristics. Then it studies how to improve production logistics from the three perspectives:the distribution of warehouses, the time of traffic jam, and the equipment’s ability of transporting, loading and unloading goods. Next, the thesis takes the minimum cost as an objective function, and establishes a model of arranging warehouses and logistic volume to optimize warehouses distribution; Combined with the principle of transportation route optimization, the thesis employs the methods of Floyd algorithm and Flexsim to improve transportation route and reduce time of traffic jam through analyzing the results of Flexism; it adopts Flexsim to establish a Flexsim model of transporting, loading and unloading goods, and it gives a quantitative functional parameter (time requirement of finishing tasks) of the transporting, loading and unloading system according to the results of operating the model. Finally, aiming at the practical problems of A steel enterprise of production logistics, it applies the methods and measures given before to optimize A’s production logistics. Through the comparative analysis of the results before and after the optimization, the cost of scrap storage of A steel enterprise is reduced, the time of traffic jam is also reduced, and the ability of transporting, loading and unloading goods is improved, which verifies the feasibility and validity of the optimization methods provided by the thesis.

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