Mathematical Programming Applications in the Crushed Stone Industry (73d2d135-37aa-4479-b2be-3bd912593040)

A linear programming model has been developed to solve a production planning problem for a multi-plant stone operation serving several customers. The factors considered are production capacities, inventory restrictions, demand requirements, and available stone reserves. The objective function to be optimized is the total annual net returns from the quarry operations. For the purposes of model testing, annual stone sales from each plant were divided monthwise, productwise, and assigned to a market. The concept of assigning demands to market sectors and not to any particular plant creates the self-correcting interplay between the plants and the markets. Along with the inventory restrictions, and ending inventory requirements, this interaction enables the model to minimize the external diseconomics. The model was tested against an operating prototype and a number of alternative problems were also considered. Finally, the basic linear programming model has been enlarged by the addition of another dimension and the problem has been derived in a decomposition format.