Study On Location Optimization Of Kaolin Processing Plant Based On Dynamic Price And Transportation Mode

With the rapid economic development, the demand from various industries including the fiber glass sector for non-metallic mineral products is increasing. The industrial expansion of fiber glass is eye-catching in the recent years, which has boosted its demand for high quality kaolin products. Kaolin product is one of major raw materials in the production of fiber glass. Thus, there is a bright future to exploit existing Kaolin resource and develop value-added kaolin products. From this view, how to select the location of a kaolin processing plant on the premise of low operation cost in the future is an important problem.With the selection of a new Kaolin processing plant in Sibelco Group as its research object, this paper first analyzes the raw material source, price, demand quantity and transportation cost of finished products. Based on location selection theory and relevant research methods, this paper further analyzes how to determine the location of kaolin processing plant of Sibelco Group and present a solution.This paper uses the historical analogy method and Delphi method to the demand forecast process. We build a network model of dynamic raw material price and product transportation mode for location selection of the kaolin processing plant. Considering the characteristic of single facility location selection, this paper adopts a comprehensive expense analysis method as the optimization algorithm with reference to existing algorithms as well as the operation characteristics of kaolin processing plant. Based on such algorithm, a decision objective function is set up and further calculation is completed to achieve a preliminary solution to location selection of kaolin processing plant. A survey on potential demand is done and the quantitative effect of such potential demand on the decision result of location selection is evaluated based on a comprehensive factors weighting method. Some estimation value is used in the calculation of the decision objective function, which can bring personal judgment and subjective problem. Due to this reason, a sensitivity analysis is further done on the result of location selection of kaolin processing plant.It is expected that the research method adopted in this paper can provide some reference value to future similar case study in mineral industry.