A mixed integer programming model for long term capacity expansion planning: A case study from The Hunter Valley Coal Chain

The Hunter Valley Coal Chain is the largest coal export operation in the world with a throughput in excess of 100 million tonnes per annum (Mtpa). Coal is delivered to the shipping terminal from 40 mines using 27 coal load points spread across the Hunter Valley region. This paper describes an MILP m...

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Bibliographic Details
Published in:European journal of operational research Vol. 220; no. 1; pp. 210 - 224
Main Authors: Singh, Gaurav, Sier, David, Ernst, Andreas T., Gavriliouk, Olena, Oyston, Rob, Giles, Tracey, Welgama, Palitha
Format: Journal Article
Language:English
Published: Amsterdam Elsevier B.V 01.07.2012
Elsevier
Elsevier Sequoia S.A
Subjects:
Applied sciences
Chains
Coal
Coal mines
Coal mining
Coal supply chain operations
Cost engineering
Exact sciences and technology
Expansion
Facilities planning and design
Heuristics
Integer programming
International trade
Inventory control, production control. Distribution
Logistics
Mathematical models
Mathematical programming
Operational research and scientific management
Operational research. Management science
Spreads
Studies
Transportation problem (Operations research)
Valleys
Australia
Hunter Valley
Integer programming
Facilities planning and design
Heuristics
Coal supply chain operations
Costs
Mixed integer programming
Long term
Modeling
Location problem
Terminal
Concentrated load
Coal mine
Coal
Heuristic method
Export
Plant layout
Production capacity
Logistics
ISSN:0377-2217, 1872-6860
Online Access:Get full text
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Summary:The Hunter Valley Coal Chain is the largest coal export operation in the world with a throughput in excess of 100 million tonnes per annum (Mtpa). Coal is delivered to the shipping terminal from 40 mines using 27 coal load points spread across the Hunter Valley region. This paper describes an MILP model for determining the capacity requirements, and the most cost effective capacity improvement initiatives, to meet demand while minimising the total cost of infrastructure and demurrage. We present results from computational experiments on the model’s performance along with a comparison of the model’s output with detailed analyses by the coal chain analysts and planners.
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ISSN:0377-2217
1872-6860
DOI:10.1016/j.ejor.2012.01.012