The problem of production planning in open pit mines

The variables in open pit mine production planning interact in a circular fashion, that is, without knowledge of one variable the next variable in the circle cannot be determined. Fixing or assuming the values of one or more variables along this circle will lead to inferior planning. An efficient plan will require simultaneous solution to the variables in the circle. However, such a solution is not easy to obtain due to the complexity and sheer size of the problem. During the last three decades, partial solutions have been found using operations research techniques and heuristic algorithms. In this paper, a recently developed method which utilizes a combination of a heuristic algorithm and a dynamic programming formulation is described. This method brings the required simultaneous solution to the problem. An actual example is also given to illustrate the new method.