METHOD AND SYSTEM FOR SMALL-LOT ORDERS TO OPTIMIZE PRODUCTION RUNS IN THE STEEL INDUSTRY

Steel making is a batch production process in which batches of 250 tons, called charges or heats, are grouped together in a single production run, called a cast. Because of fixed costs and downtime associated with cleanup and setup between casts, a cast of less than three charges is likely to be inefficient. As a result, short-run orders (such as, for example, orders of less than 750 tons) may present efficiency problems. The present invention transforms the operation from a make-to-order model to a make-to-stock model, enabling orders to be clustered based on considerations such as grade and geometry to maximize the number of clusters that satisfy the cast-size constraint.