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Scrap Charge Optimization Using Fuzzy Chance Constrained Linear Programming

Risto Lahdelma, Aiying Rong, Scrap Charge Optimization Using Fuzzy Chance Constrained Linear Programming. In: Eero Hyvönen, Tomi Kauppinen, Jukka Kortela, Mikko Laukkanen, Tapani Raiko, Kim Viljanen (Eds.), Proceedings of the Ninth Scandinavian Conference on Artificial Intelligence (SCAI 2006), Espoo, Finland, October 25-27, 2006., 118-128, Finnish Artificial Intelligence Society FAIS, 2006.

Abstract:

We consider the problem of determining the optimal mix of different kinds the scrap in steel pro-duction. The uncertainty of the chemical composition of different kinds of scrap induces a consider-able risk for the scrap mix failing to satisfy the composition requirements for the final product. We formulate the scrap charge optimization problem as a fuzzy chance constrained linear programming problem. We adopt a strengthened version of soft constraints to interpret the fuzzy constraints based on the application context and form a crisp model with consistent and compact constraints for solu-tion. The simulation results based on the realistic steel production data show that the failure risk can be hedged by proper combination of aspiration levels and confidence factors for representing the fuzzy number. There is a tradeoff between failure risk and material cost. The presented approach applies also for other scrap-based production processes, such as aluminum and copper production.

BibTeX entry:

@INPROCEEDINGS{inpLaRo06a,
  title = {Scrap Charge Optimization Using Fuzzy Chance Constrained Linear Programming},
  booktitle = {Proceedings of the Ninth Scandinavian Conference on Artificial Intelligence (SCAI 2006), Espoo, Finland, October 25-27, 2006.},
  author = {Lahdelma, Risto and Rong, Aiying},
  editor = {Hyvönen, Eero and Kauppinen, Tomi and Kortela, Jukka and Laukkanen, Mikko and Raiko, Tapani and Viljanen, Kim},
  publisher = {Finnish Artificial Intelligence Society FAIS},
  pages = {118-128},
  year = {2006},
  keywords = {Fuzzy sets, linear programming, chance constraint, scrap charge optimization, steel production.},
}

Belongs to TUCS Research Unit(s): Algorithmics and Computational Intelligence Group (ACI)

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