Value-based production planning in non-ferrous metal industries: Application in the copper industry. (2nd October 2020)

• Record Type: Journal Article
• Authors: Siemon, Michel; Schiffer, Maximilian; Mitra, Sumit; Walther, Grit
• Is Part Of: IISE transactions. Volume 52:Number 10(2020)
• Page Start: 1063
• Page End: 1080
• Publication Date: 2020-10-02
• Subjects: Process industries -- process optimization -- applied optimization; Industrial engineering -- Periodicals; Systems engineering -- Periodicals; Industrial engineering; Systems engineering; Electronic journals; Periodicals; 670.285
• DOI: 10.1080/24725854.2020.1711992
• Languages: English
• ISSNs: 2472-5854

Abstract

Abstract: Production planners in the non-ferrous metal industry face an inherent combinatorial complexity of the metal production process within a fast-changing market environment. Herein, we study the benefit of an integrated optimization-based planning approach. We present the first value-based optimization approach for operational planning in the non-ferrous metal industry that yields high economic and technical benefits. We present a mixed-integer linear program for non-ferrous metal operational production planning that covers the complexity of material flows and the entire production process and is amenable for real-time application. We give insights into the practical implementation and evaluation of our modeling approach at a plant of Aurubis, a large European non-ferrous metal producer. Our results show that an optimization and value-based production planning approach provides significant benefits, including a 38% better planning solution in practice. In addition to economic benefits, we highlight the technical advantages that result from a detailed techno-economic representation of the entire production process.