Research on the MTO-MTS production management of steel-iron factories

Based on the production organization processes of steel-iron factories, this paper proposed a hybrid MTO-MTS order planning management method, and established mixed integer programming models for the order planning problems based on MTO-MTS management idea. The models took into account earliness/tardiness penalty, inventory cost, production penalty, inventory matching and order cancellation penalty, and considered inventory matching and production planning together. In order to solve the models, this paper designed the PSO algorithm. Numerical results show that the MTO-MTS management mode can avoid the risk of demand forecasting inaccuracy, coordinate the contradiction of fast delivery and low inventory, and adapt to the development trend of the diversification and individualization of market demand.