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

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  • Singh, Gaurav
  • Sier, David
  • Ernst, Andreas T.
  • Gavriliouk, Olena
  • Oyston, Rob
  • Giles, Tracey
  • Welgama, Palitha

Abstract

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.

Suggested Citation

  • Singh, Gaurav & Sier, David & Ernst, Andreas T. & Gavriliouk, Olena & Oyston, Rob & Giles, Tracey & Welgama, Palitha, 2012. "A mixed integer programming model for long term capacity expansion planning: A case study from The Hunter Valley Coal Chain," European Journal of Operational Research, Elsevier, vol. 220(1), pages 210-224.
    • Handle: RePEc:eee:ejores:v:220:y:2012:i:1:p:210-224
    DOI: 10.1016/j.ejor.2012.01.012
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    3. Gleb Belov & Natashia L. Boland & Martin W. P. Savelsbergh & Peter J. Stuckey, 2020. "Logistics optimization for a coal supply chain," Journal of Heuristics, Springer, vol. 26(2), pages 269-300, April.
    4. Menezes, Gustavo Campos & Mateus, Geraldo Robson & Ravetti, Martín Gómez, 2017. "A branch and price algorithm to solve the integrated production planning and scheduling in bulk ports," European Journal of Operational Research, Elsevier, vol. 258(3), pages 926-937.
    5. Saurabh Pratap & Yash Daultani & M. K. Tiwari & Biswajit Mahanty, 2018. "Rule based optimization for a bulk handling port operations," Journal of Intelligent Manufacturing, Springer, vol. 29(2), pages 287-311, February.
    6. Zeng, Lanyan & Liu, Shi Qiang & Kozan, Erhan & Corry, Paul & Masoud, Mahmoud, 2021. "A comprehensive interdisciplinary review of mine supply chain management," Resources Policy, Elsevier, vol. 74(C).
    7. Inthavongsa, Inthanongsone & Drebenstedt, Carsten & Bongaerts, Jan & Sontamino, Phongpat, 2016. "Real options decision framework: Strategic operating policies for open pit mine planning," Resources Policy, Elsevier, vol. 47(C), pages 142-153.
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    9. Benjamin T. Hazen & Joseph B. Skipper & Christopher A. Boone & Raymond R. Hill, 2018. "Back in business: operations research in support of big data analytics for operations and supply chain management," Annals of Operations Research, Springer, vol. 270(1), pages 201-211, November.
    10. Burdett, RL, 2016. "Optimisation models for expanding a railway's theoretical capacity," European Journal of Operational Research, Elsevier, vol. 251(3), pages 783-797.
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    12. Thomas, Anu & Venkateswaran, Jayendran & Singh, Gaurav & Krishnamoorthy, Mohan, 2014. "A resource constrained scheduling problem with multiple independent producers and a single linking constraint: A coal supply chain example," European Journal of Operational Research, Elsevier, vol. 236(3), pages 946-956.

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