Optimising Coal Stockpiles in a Supply Chain Using a Dynamic Cost Flow Model
View/ Open
Author(s)
West, Jason
Griffith University Author(s)
Year published
2011
Metadata
Show full item recordAbstract
This paper employs a stochastic and dynamic intermediate storage model to estimate the optimal stockpile levels at both a mine and port for a coal supply chain. The optimisation model demonstrates that the principle costs incurred from high inventories of coal include working capital, storage costs and double handling costs, whilst costs incurred from low inventories are dominated by train cancellations, spot price purchases of coal to make up shortfalls and demurrage. The optimisation model allows for the dynamic interaction of cost functions across the supply chain and results in optimal inventories that are typically lower ...
View more >This paper employs a stochastic and dynamic intermediate storage model to estimate the optimal stockpile levels at both a mine and port for a coal supply chain. The optimisation model demonstrates that the principle costs incurred from high inventories of coal include working capital, storage costs and double handling costs, whilst costs incurred from low inventories are dominated by train cancellations, spot price purchases of coal to make up shortfalls and demurrage. The optimisation model allows for the dynamic interaction of cost functions across the supply chain and results in optimal inventories that are typically lower than intuitively assumed by logistics managers.
View less >
View more >This paper employs a stochastic and dynamic intermediate storage model to estimate the optimal stockpile levels at both a mine and port for a coal supply chain. The optimisation model demonstrates that the principle costs incurred from high inventories of coal include working capital, storage costs and double handling costs, whilst costs incurred from low inventories are dominated by train cancellations, spot price purchases of coal to make up shortfalls and demurrage. The optimisation model allows for the dynamic interaction of cost functions across the supply chain and results in optimal inventories that are typically lower than intuitively assumed by logistics managers.
View less >
Journal Title
ASOR Bulletin
Volume
30
Issue
2
Publisher URI
Copyright Statement
© The Author(s) 2011. The attached file is reproduced here in accordance with the copyright policy of the publisher. For information about this journal please refer to the journal's website or contact the author.
Subject
Optimisation
Information Systems
Business and Management