GARTLAND STEEL
Gartland Steel is facing a problem with respect to adhering to the pollution regulations of EPA. Currently their particulate pollution level exceeds the maximum level as prescribed by the standards. The Director of the plant is concerned about the reduction in profit which can happen when the plant has to adhere to the respective regulations. He has different options available to tackle this problem. But the effect of each option on the profit margin has to be evaluated before considering them seriously.
The different options are:
1) stack-by-stack where each module particular pollutant has to be reduced by a fixed amount
2) buying a plant such that you can use the pollution permit allotted for that plant, a variant of offset policy
3) changing the production process in open hearth plant
4) using the bubble policy where the pollution from coal and ore yard can be avoided by cleaning it up.
Some options are considered where two or more of the above options are combined. Different linear programmes are formulated and solved with necessary constraints for each option. Each option is then evaluated on the basis of the profit margin achieved for each alternative. Finally the alternative is selected which offers the maximum profit. We found that following the bubble policy by bringing the coal and ore yards under the bubble offer the best solution in terms of profit. This is under the assumption that the expense incurred in cleaning yards is less compared to the profit it offers.
Gartland Steel was one of the largest steel producers in the U.S.A. It was the country’s fourth largest steel maker in tonnage and third la ...