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G-2016-100

A dynamic-material-value-based decomposition method for mineral supply chain optimization

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A decomposition method is developed to optimize a mineral value chain composed of a one or multiple mines and a material flow circuit. In the proposed decomposition method, the mine production schedule for each mine and the material flow plan for the material circuit are optimized through separated models and a mechanism is developed to coordination all models to maximize the expected NPV of the entire mineral value chain. The proposed approach is tested through a practical-scale case study and the test results show that the proposed method can effectively coordinate the optimizations of the mine production scheduling model and the material flow planning model. The proposed method can also be applied to optimize a mineral value chain with more complex structures and more details.

, 19 pages

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