SCM-based optimization of production planning for coal mine

The uncertainty of occurrence of raw coal and coal quality and the various constraints on mine production capacity are the major factors which need to be taken into special consideration in the supply chain management (SCM) of coal enterprises. In order to make coal enterprises to quickly respond to changes in customer demand and improve supply chain and logistics management level, this paper presents a supply chain model for coal mine planning with a linear programming model for production scheduling. The goal for the optimization model of production planning and scheduling is to maximize sales volume with the constraints of customer demand, lead time, capacity constraints and inventory in the supply chain. An example of open pit coal mine is used to demonstrate the model application and its ability in reducing planning and scheduling time and responding to uncertainty.