Advanced Modeling and Optimization

Abstract for Paper 2 of Volume 2, Number 1, 2000, pp. 13-40


Modelling Inter-temporal Capacity Transfer in an Aluminium Smelter


Miles G. Nicholls
School of Business,
Swinburne University of Technology,
PO Box 218, Hawthorn 3122 Victoria, Australia
Phone: +61 3 9214 8434
Fax: +61 3 9819 0949
E-mail: mnicholls@swin.edu.au

Abstract

In this paper, an existing model of a multiperiod nonlinear bilevel model of an aluminium smelter which allows for the transfer of stocks of raw materials is extended to allow for the intertemporal transfer of capacity through the transfer of intermediate products. The situation arises in reality where a part of the smelter is closed for scheduled maintenance and in order to adhere to the "prime directive" of an aluminium smelter, "don't stop production", it is necessary to transfer capacity from previous months to the month in question. Capacity per se cannot be transferred, however, the stocks of needed "intermediate" raw materials (i.e., partly processed materials needed for the next stage of production) can be, thus allowing the plant to continue operation. In building in the necessary infrastructure into the existing multiperiod model, a number of substantial alterations were required. The most important change was the introduction of an additional variable to allow for the separation of the levels of activity of two main areas of the plant that produce the needed materials to allow smelting to take place. Additional work on the already foreshadowed heuristic solution algorithm for the multiperiod model is also highlighted.