EXECUTIVE SUMMARY

Problem Definition:
The Gartland Steel Company is a leading manufacturer of Steel of the
United States. A new
Objectives:
Without pollution from coal and ore yard:
1. Identify the input-output mix at the present levels of pollution ie.,
5525 thousand pounds/year.
2. Identify the input-output mix at the desired levels of pollution ie.,
5163 thousand pounds/year.
3. Identify the change in profits when the mix in the open hearth
furnaces is changed.
Include pollution from coke and ore yard into the Linear program
Include pollution from coal and ore yard
4. Identify the input-output mix at the present levels of pollution ie.,
5525 thousand pounds/year.
5. Identify the input-output mix at the desired levels of pollution ie.,
5163 thousand pounds/year.
6. Identify the change in profits when the mix in the open hearth
furnaces is changed.
Linear Program Formulation:
The linear program was formulated using the following rules obtained
from the case data.

The ratio of inputs to outputs at any processing unit (such as coking

plant, blast furnace etc..) shall be in the ratio as per the
requirement and output given in the table.
Ex: Consider the table given below
1 ton of outputs
Produces scrap
(tons)
Produces
particulate
pollution (pounds)
Requires (tons)

Sinter Plant
Sinter
--

Blast Furnace
Pig Iron
0.01

0.777

0.474

0.52
Ore

1.12
Ore
0.65
Coke

Operating Costs
Coast of coal and
ore used
Energy Credits

$18.77
$18.82

0.47
Sinter
$57.82
$40.54

$0.00

$0.16

Under Sinter Plant, it shows that for producing 1 ton of Sinter, it takes 0.52
ton of ore.
Representing the same in the form of an equation, we obtain the following
equation
x sinter=

xore
0.52

This equation can be further reduced to the following to make it easier to

use with excel solver.
0.52 xsinter xore=0
So the coefficients of the variables xsinter and xore will be 0.52 and -1
respectively and the constraint equation will be equated to 0.
A similar process is followed throughout