Optimizing short-term production plan using a portfolio optimization model
Abstract Short-term production plans are the basis for operational mine production schedules. They concentrate on making long-term mine plans operationally feasible. It ensures a steady flow of product for meeting blending targets. Due to the quality variation of material, blend optimization is an u...
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| Format: | Article |
| Language: | English |
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Fundação Gorceix
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| Series: | REM: International Engineering Journal |
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| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S2448-167X2017000100109&lng=en&tlng=en |
| _version_ | 1819260390040666112 |
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| author | Morteza Osanloo Mehdi Rahmanpour |
| author_facet | Morteza Osanloo Mehdi Rahmanpour |
| author_sort | Morteza Osanloo |
| collection | DOAJ |
| description | Abstract Short-term production plans are the basis for operational mine production schedules. They concentrate on making long-term mine plans operationally feasible. It ensures a steady flow of product for meeting blending targets. Due to the quality variation of material, blend optimization is an uncertainty based optimization problem. There are different approaches toward uncertainty management and the current paper investigates a portfolio optimization model in order to minimize the risks in short-term plans. In this paper, a fuzzy linear programming model is formulated to provide a set of options for the mine plan. These blending options are treated as portfolios. Then a model for the optimal selection of a portfolio is introduced. The objective of the model is to maximize the expected return of the portfolio under constraints limiting its variance. The model is applied in a limestone mine complex. |
| first_indexed | 2024-12-23T19:25:08Z |
| format | Article |
| id | doaj.art-7aa8f4c266cd426d9250a2abd2ed463d |
| institution | Directory Open Access Journal |
| issn | 2448-167X |
| language | English |
| last_indexed | 2024-12-23T19:25:08Z |
| publisher | Fundação Gorceix |
| record_format | Article |
| series | REM: International Engineering Journal |
| spelling | doaj.art-7aa8f4c266cd426d9250a2abd2ed463d2022-12-21T17:34:04ZengFundação GorceixREM: International Engineering Journal2448-167X70110911610.1590/0370-44672016700071S2448-167X2017000100109Optimizing short-term production plan using a portfolio optimization modelMorteza OsanlooMehdi RahmanpourAbstract Short-term production plans are the basis for operational mine production schedules. They concentrate on making long-term mine plans operationally feasible. It ensures a steady flow of product for meeting blending targets. Due to the quality variation of material, blend optimization is an uncertainty based optimization problem. There are different approaches toward uncertainty management and the current paper investigates a portfolio optimization model in order to minimize the risks in short-term plans. In this paper, a fuzzy linear programming model is formulated to provide a set of options for the mine plan. These blending options are treated as portfolios. Then a model for the optimal selection of a portfolio is introduced. The objective of the model is to maximize the expected return of the portfolio under constraints limiting its variance. The model is applied in a limestone mine complex.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S2448-167X2017000100109&lng=en&tlng=enshort-term planningportfolio optimizationfuzzy linear programminguncertainty |
| spellingShingle | Morteza Osanloo Mehdi Rahmanpour Optimizing short-term production plan using a portfolio optimization model REM: International Engineering Journal short-term planning portfolio optimization fuzzy linear programming uncertainty |
| title | Optimizing short-term production plan using a portfolio optimization model |
| title_full | Optimizing short-term production plan using a portfolio optimization model |
| title_fullStr | Optimizing short-term production plan using a portfolio optimization model |
| title_full_unstemmed | Optimizing short-term production plan using a portfolio optimization model |
| title_short | Optimizing short-term production plan using a portfolio optimization model |
| title_sort | optimizing short term production plan using a portfolio optimization model |
| topic | short-term planning portfolio optimization fuzzy linear programming uncertainty |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S2448-167X2017000100109&lng=en&tlng=en |
| work_keys_str_mv | AT mortezaosanloo optimizingshorttermproductionplanusingaportfoliooptimizationmodel AT mehdirahmanpour optimizingshorttermproductionplanusingaportfoliooptimizationmodel |