Beaverton Oregon US based creator of the world’s fastest mathematical optimization solver Gurobi Optimization has added world’s leading steel producer Tata Steel UK to its extensive list of clients. To tackle the immense complexities of coal blending and streamline production, Tata Steel created their own Coal Blending Optimization Model. With the help of Gurobi, this model is projected to cut costs by millions in the long term. Each material that goes into the coal blending process is available in a wide range of quantities and prices, and each can affect the final product’s quality in different ways. Because of those variables and any number of added constraints, it would be virtually impossible for a human alone to evaluate all possible combinations and select the single best one. But with the Gurobi Compute Server, Tata Steel can now evaluate all available blend options, and within seconds identify the combination that utilizes the most cost-effective input materials without sacrificing quality. This has allowed Tata Steel to improve their cash position and lower the costs per slab produced.Prior to using Gurobi Compute Server, Tata Steel built their optimization models in Excel. Since they started using Gurobi, however, their CBOM has identified blends they had never considered, which has led them to new and improved strategies. After a series of tests, the company found these new blends were indeed superior to the ones they had previously worked with.Tata Steel also reports that because they’re now able to identify high-value blends within seconds, they’ve reduced the number of coals used in their steel production, which supports their goal of minimizing stocks and keeping cash in the business.This optimization model, the technology, and the lessons learned while developing it have acted as a template for other models, providing further benefits and more opportunities to find and deliver value.
Beaverton Oregon US based creator of the world’s fastest mathematical optimization solver Gurobi Optimization has added world’s leading steel producer Tata Steel UK to its extensive list of clients. To tackle the immense complexities of coal blending and streamline production, Tata Steel created their own Coal Blending Optimization Model. With the help of Gurobi, this model is projected to cut costs by millions in the long term. Each material that goes into the coal blending process is available in a wide range of quantities and prices, and each can affect the final product’s quality in different ways. Because of those variables and any number of added constraints, it would be virtually impossible for a human alone to evaluate all possible combinations and select the single best one. But with the Gurobi Compute Server, Tata Steel can now evaluate all available blend options, and within seconds identify the combination that utilizes the most cost-effective input materials without sacrificing quality. This has allowed Tata Steel to improve their cash position and lower the costs per slab produced.Prior to using Gurobi Compute Server, Tata Steel built their optimization models in Excel. Since they started using Gurobi, however, their CBOM has identified blends they had never considered, which has led them to new and improved strategies. After a series of tests, the company found these new blends were indeed superior to the ones they had previously worked with.Tata Steel also reports that because they’re now able to identify high-value blends within seconds, they’ve reduced the number of coals used in their steel production, which supports their goal of minimizing stocks and keeping cash in the business.This optimization model, the technology, and the lessons learned while developing it have acted as a template for other models, providing further benefits and more opportunities to find and deliver value.
