Optimization of Product Mix in Cold Rolling Steel Industry Using Product Portfolio Matrix and Multi Objective Goal Programming Model

Abstract

This paper aims to develop an optimum product mix for monthly saleable steel in cold rolling steel industry ( JSW) which is one of the leading cold rolling , galvanizing and colour coating  house in India. The company is going for the production of 45000mt per month and aiming for maximum EBIDTA and maximum utilization of all main line. Out of 13 products selected for optimization company aim is to decide monthly production tonnage of each selected product. This is done by making product portfolio matrix which shows which products are more convenient for production considering market attractiveness and competitive position factors by taking opinion of marketing and operation expert’s. Further Multi objective linear programming approach is applied for getting solution of optimal product mix. After getting results by both approach it is compared with actual figures of company and final production figures of all 13 products are freeze for maximum EBIDTA and maximum utilization of plant

Keywords: Product portfolio matrix, cold rolling, galvanizing, market attractiveness factors, competitive position factors.