Supply chain optimization in the forest industry

In this project report, we will talk about Forest supply chains its planning levels and optimization. This project is about modelling and solving large-scale planning problems in the supply chain in the forest industry. We have included five research papers. The first 3 concentrate on the modelling, and the final 2 on the solution methods. The problems studies are tactical multi-commodity problems expressed as mixed integer programming (MIP) models. The work is carried out together with 2 firms within the forest industry. In Report I, a challenge in regards to the supply chain of forest fuel is modelled and solved. We research the challenge of deciding where and when forest residues should be transformed into wood chips, and just how the residues and chips should be transported and stored as a way to fulfill energy demand at heating plants. The organization has long-term contracts with forest owners and saw mills. Choices in the model consist of whether or not additional harvest areas and saw mills should be contracted and which terminals should be used. The planning horizon is one year and monthly time periods are utilized. The planning horizon is normally one year. Papers II–III take into account only one time period. In Report II the supply chain from pulp mills to consumers is modelled and also the combined problem of determining terminal locations and which ship routes to use is examined. Shipping vessels chartered on long or short term are put into use to move products to terminals in Europe. From each terminal, these products are transported to consumers by truck, train, or a mix of both. Furthermore, trains and trucks can be utilized for transports straight to customers from mills. In Report III the entire supply chain, from harvest areas to consumers, is considered. Decisions included are transportation of raw materials, production mix, the distribution of pulp products, and the choice of possible orders along with their quantities at customers. The ship routes are regarded as flow links…

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Introduction and overview
Supply chains
Forest supply chains
Planning levels
Optimization of supply chains
The Papers included
Overview of the Papers
Paper I
Paper II
Paper III
Paper IV
Paper V
Suggestions for future research……..

Source: Linkoping University

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