Using aggregation to optimize long-term production planning at an underground mine

Using aggregation to optimize long-term production planning at an underground mine

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Article ID: iaor20084577
Country: Netherlands
Volume: 176
Issue: 2
Start Page Number: 1205
End Page Number: 1218
Publication Date: Jan 2007
Journal: European Journal of Operational Research
Authors: ,
Keywords: scheduling, heuristics, programming: integer, production
Abstract:

Motivated by an underground mining operation at Kiruna, Sweden, we formulate a mixed integer program to schedule iron ore production over multiple time periods. Our optimization model determines an operationally feasible ore extraction sequence that minimizes deviations from planned production quantities. The number of binary decision variables in our model is large enough that directly solving the full, detailed problem for a three year time horizon requires hours, or even days. We therefore design a heuristic based on solving a smaller, more tractable, model in which we aggregate time periods, and then solving the original model using information gained from the aggregated model. We compute a bound on the worst case performance of this heuristic and demonstrate empirically that this procedure produces good quality solutions while substantially reducing computation time for problem instances from the Kiruna mine.

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