Production and Inventory Dynamics in the Mining Supply Chain: The Impact of Extraction Routings

Abstract

This paper deals with integrated production-inventory-routing decisions in mining industries. It treats the impact of phosphate extraction routings adopted in open pit mines in providing stocks with diversified characteristics, to satisfy customer requirements at a minimum production cost. Those routings aim to control minerals’ characteristics in terms of quality, volume, and delivery time. For planning production activities, there is a need to select the right extraction routings in mines, to enrich (or not) the raw material and then blend ingredients according to their availability and customer requirements. Less attention was given by literature to the impact of extraction routings in production and stock dynamics. The primary focus revolves around filling the gap and recognizing their pivotal impact in open pit mines. While washing and blending ingredients play crucial roles, they alone may not always suffice to meet customer requirements. This paper undertakes an exhaustive study and modeling, using the case study of a Moroccan company specialized in phosphate rock production and its derivatives, aiming to underscore the significance of extraction routings through tangible and real examples. The findings emphasize a crucial need for variating the extraction routings in providing stocks of raw materials with the optimal characteristics regarding customer requirements.