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Mathematical Problems in Engineering
Volume 2019, Article ID 7948349, 10 pages
Research Article

Integrated Production and Distribution Planning for the Iron Ore Concentrate

Wenbo Liu,1,2 Defeng Sun,3,4 and Te Xu4,5

1Key Laboratory of Data Analytics and Optimization for Smart Industry (Northeastern University), Ministry of Education, China
2Department of Logistics Management, Liaoning Provincial College of Communications, Shenyang, 110122, China
3Liaoning Engineering Laboratory of Operations Analytics and Optimization for Smart Industry, Northeastern University, Shenyang, 110819, China
4Institute of Industrial and Systems Engineering, Northeastern University, Shenyang, 110819, China
5Liaoning Key Laboratory of Manufacturing System and Logistics, Northeastern University, Shenyang, 110819, China

Correspondence should be addressed to Wenbo Liu; moc.361@513-obnew

Received 26 December 2018; Accepted 12 February 2019; Published 28 February 2019

Academic Editor: Thomas Hanne

Copyright © 2019 Wenbo Liu et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper studies the production and distribution planning problem faced by the iron ore mining companies, which aims to minimize the total costs for the whole production and distribution system of the iron ore concentrate. The ores are first mined from multiple ore locations, and then sent to the corresponding dressing plant to produce ore concentrate, which will be sent to distribution centers and finally fulfill the customers' demands. This paper also tackles the difficulty of variable cut-off grade when making mining production planning decisions. A mixed-integer programming model is developed and then solved by a Lagrange relaxation (LR) procedure. Computational results indicate that the proposed solution method is more efficient than the standard solution software CPLEX.