IDEAS home Printed from https://ideas.repec.org/a/spr/ijsaem/v15y2024i6d10.1007_s13198-024-02278-y.html
   My bibliography  Save this article

A linear mathematical optimization model for variable costs calculation in fertilizer production complex

Author

Listed:
  • Nenad Zečević

    (Fertilizer Production Complex)

  • Slobodan Jevremović

    (Fertilizer Production Complex)

Abstract

A fertilizer production complex presents a highly intensive industrial process mutually interlinked with raw materials, products, co-products, and by-products. It constantly demands energy improvement and smart utilization of all utilities, especially natural gas. In order to minimize the production costs, it is developed a linear mathematical economic optimization model for maximizing total profit with variable production cost calculation for different fertilizer products. The main objective of the work is model development for precise and rapid calculation of various fertilizers products, co-products and by-products variable costs taking in account all constraints during production process. The model was solved by a set of comprehensive expressions in LINGO software. MS Access was used as a database, while MS Visio was used for the graphical presentation of interlinks between different production units. The model results are compared against real accounting data from the Petrokemija fertilizer production complex. The model shows that the objective function is the most sensitive to the natural gas price. The model is simple and flexible for daily use and presents a powerful tool for making decisions about production outages. The paper significance is attributed to proper tracking and allocation of the variable costs amongst different fertilizer products.

Suggested Citation

  • Nenad Zečević & Slobodan Jevremović, 2024. "A linear mathematical optimization model for variable costs calculation in fertilizer production complex," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(6), pages 2588-2598, June.
    • Handle: RePEc:spr:ijsaem:v:15:y:2024:i:6:d:10.1007_s13198-024-02278-y
    DOI: 10.1007/s13198-024-02278-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13198-024-02278-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13198-024-02278-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijsaem:v:15:y:2024:i:6:d:10.1007_s13198-024-02278-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.