Simulation of a dual-echelon iron pellet Supply Chain using System dynamics

Document Type: Research Paper


1 Mining engineering group- Tarbiat Modares University- Tehran, Iran

2 Faculty of ٍٍEngineering- Tarbiat Modares University- Tehran- Iran

3 Assistant Professor- Industrial Engineering- Tarbiat Modares University


Steel Supply Chain using Direct Reduction Method (DRI) includes all activities from supplying iron ore, concentrate, pellet, sponge iron and finally delivering the ultimate commodities to the steel production units. Different complexities and uncertainties of supply chains; such as limitation of suppliers and customers, variety of technical & economical option etc, cause to have a proper management of the supply chain. In this study, a system dynamic approach was used to simulate a dual-echelon of steel supply chain (iron ore-concentrate & concentrate-pellet). Hence, not only this study defines the influence of qualitative and quantitative variables in supply chain management (SCM), but also the interaction between variables and their feedbacks. This model is implemented in a steel complex using DRI in Iran in which various scenarios are analyzed. The simulation results show that an increase of 2% in iron ore grade results in 3.35% rise in total pellet production. Also, simultaneously increase of 2% in ore grade, 5% in production rate and 2% in conversion ratio results in 5.85% in total pellet production.


Main Subjects

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