A Generalized Multiperiod MIP Model For Production Scheduling And Processing Facilities Selection And Location ? Introduction

In the mineral industry, the objective of a mining venture is to extract, process, and market a mineral commodity in such a manner that the profit of the venture is maximized. In a mining venture, a company normally has control over mine production scheduling, the selection and location of processing facilities (mineral beneficiation plants, smelting plants, refineries, or blending facilities), processed ore blending, and the selection of markets. The flexibility of the above factors provides many alternatives to satisfy the needs of each market with regard to quantity and quality of ore. The purpose of this paper is to present a mathematical model for determining the alternative that yields the maximum profit. Production planning is generally concerned with the best utilization of fixed resources, more specifically, with the determination of production and inventory levels to meet fluctuating demand requirements. A mine can be any source of ore such as an entire mine, a production unit within a mine, or an independent supplier. The objective of production scheduling is to determine the times at which each mine will be used and to allocate a required level of production. Production planning and scheduling problems are intimately associated with the location of new and existing mines and processing facilities. Although the location of the mines is usually fixed, there can be considerable flexibility in locating new processing facilities, in the selection of the processing plant, and in blending the ore before and after processing.