Mathematical programming model and algorithms for production planning with considering slab matching

Under the condition of fluctuant demand in the iron and steel enterprise management strategy, this paper analyzes the relation among order, inventory and production capacity based on the mixed production model of MTO and MTS. A joint optimum model of finished product in inventory matching and production planning is proposed which is an extension of the multiple knapsack problem and it belongs to NP-hard problem. This paper takes into account two ways of solving the result respectively: 1) For the smaller scale problem, the problem can be transformed into basic 0-1 linear programming by math transformation. 2) For the larger scale problem, this paper constructs improved genetic algorithm with heuristic operator. The feasibility and the validity of model and algorithm have been verified through example emulation.