Operations Research Management
Aluminum industry and trade, Aluminum -- Extrusion -- Waste products, Metropolitan Metal (Firm) -- Management, Operations research
In the aluminum extrusion industry, managers must determine the best way to deal with their excess material in the form of processing scrap, defects and returns. All of these items represent potentially missed profits. In our paper, we used data from an aluminum extrusion plant in Thailand called Metropolitan Metal. All of our data is actual working data from this plant. All scrap material can be re-processed once or it can be sold for recycling elsewhere. The decision of how to handle this material will also be impacted by the number of orders coming in from the mid and low-end markets where the recycled products are accepted. We have generated a generalized model, to determine how scrap can be managed to maximize profits. This model could potentially take data from any market or plant and help those managers make similar decisions. In order to use the model under different circumstances the user will need to enter primary data such as cost for raw material, cost of operations, potential selling price and demand in markets willing to accept recycled material. Ideally, use granular data for most accurate results. In this paper, we suffered in some cases where assumptions had to be made because granular data was not available.
Note: The presentation associated with this report is included here as a supplemental file.
Tanyavutti, Ardthawee; Fox, Andrea; Forrest, Clarence; and Cheeparranai, Napabhaj, "Make Scrap Pay" (2006). Engineering and Technology Management Student Projects. 1284.