A MULTI-OBJECTIVE COAL INVENTORY MANAGEMENT MODEL USING MONTE CARLO COMPUTER SIMULATION

Authors

  • Ryno Brits Stellenbosch University
  • James Bekker Stellenbosch University

DOI:

https://doi.org/10.7166/27-4-1560

Keywords:

stockpile, multi-objective optimisation, simulation

Abstract

The ability of a coal-fired power station to meet its generation targets is influenced by periods of coal shortage. In this article, we propose a multi-objective inventory model to assist with the management of coal stockpiles. The model is applicable to power utilities with a network of two or more coal-fired power stations. The aim is to determine the near-optimal amount of coal inventory to stockpile at each station in the network. A Monte Carlo coal stockpile simulator is used to incorporate stochastic uncertainty into the stockpile levels, while a metaheuristic uses the simulator as an estimator of two objective functions. The metaheuristic finds good values for the coal stockpile level at each power station in the network. The algorithm for multi-objective optimisation using the cross-entropy method is proposed as a suitable metaheuristic. A hypothetical case study is used to validate the inventory model and to showcase the optimisation results. 

Author Biographies

Ryno Brits, Stellenbosch University

Masters student in the Department of Industrial Engineering

James Bekker, Stellenbosch University

Industrial Engineering

Senior Lecturer

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Published

2016-12-06

How to Cite

Brits, R., & Bekker, J. (2016). A MULTI-OBJECTIVE COAL INVENTORY MANAGEMENT MODEL USING MONTE CARLO COMPUTER SIMULATION. The South African Journal of Industrial Engineering, 27(4), 215–226. https://doi.org/10.7166/27-4-1560

Issue

Vol. 27 No. 4 (2016)

Section

Case Studies

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