Modeling and Solution of Open Pit Supply Chain Considering Ore Blending

Abstract:

From the perspective of supply chain, this paper takes into consideration the production characteristics in ore blending process, and establishes a 01 mixedinteger program which aims at maximizing the profit and minimizing the deviation of product’s ore grade, and satisfies the constraints of production capacity, resource limits, inventory balancing and product quality requirements. The Lagrangian relaxation algorithm (LR) is adopted to solve the problem. Computational experiments show that LR could fast obtain the feasible solution for mediumscale instances, and could obtain the optimal solutions within reasonable time for largescale instances while CPLEX fails to obtain the feasible solutions. Besides, the sensitivity analysis on the grade parameters is conducted, and the results show that disturbance of the grade is a sensitive factor for the quality deviation and the general objective function value.

Key words:ore blending; supply chain; 01 mixed integer program; Lagrangian relaxation algorithm (LR); sensitivity analysis