Mathematical Modeling

The systems contributing to the cost analysis, and the flow of data input and output related to these systems, are brought into focus in Figure 6. The various sub-systems of the Master Design Simulator provide the raw operating data basic to the cost model which, operating independently, accumulates the raw input, assigns costs to this data by standard or modified costing procedures, manipulates the costs into standard formats and outputs the data for managerial evaluation. Cost Modeling Direct costing methods are not complex in the sense that elemen¬tary arithmetic is employed using the same basic relations for each cost category. The basic cost model relations described above are illustrated in Figure 7. The greatest difficulty encountered in the transition from a dy¬namic systems simulation model to a costing model is the time frame of the input and output data. Dynamic simulation models utilize a small time increment, on the order of seconds or fractions of seconds, to analyze system operations and interactions. On the other hand, for cost computation and reporting, the smallest relevant time unit is the shift, with reporting periods expanding to days, weeks, months, and years. Complications arise in the accumulation of data for the various report periods due to the use of the Gregorian calendar by modern so¬ciety. The potential for simulation for the life of the mine, possibly in excess of 50 years, increases the complexity of the costing process