Model Verification And Implementation

Model testing is a two part operation; first, to assure the valid¬ity of the mathematical statements and second, to evaluate the accuracy of the computer model for predictive purposes. Verification of both the conceptual and computational aspects can be achieved through the use of input data for which output results are available for comparison. In this dissertation, two test problems were selected for model testing from the Economic Evaluation Reports of the U.S. Bureau of Mines, Process Evaluation Group. Verification Data Set I Input data for this test was selected from an economic analysis of a hypothetical 1,056,000-ton-per-year mine in a 48-inch bituminous coal seam (Process Evaluation Group-Report No. 72-27, 1972). The mine was scheduled to operate five days per week, three shifts per day, 220 days per year with an estimated life of 20 years. Coal reserves covered an area of 6.4 square miles with an expected recovery rate of 70%. Production was achieved through 4 continuous miner sections with an average production rate of 400 tons per shift. The cost summary in the report included a breakdown of equipment and labor requirements. A depreciation schedule listed the expected capital expense per year of operation, assuming capital replacement with identical units and no change in the unit cost. Supply and oper¬ating costs were listed in both gross annual figures and cost per ton of production. The operating and investment costs were projected over the 20 year mine life and a discounted cash flow analysis performed to determine