A Sequential Optimization Approach in Tactical Planning for Value Creation in the Forest Products Industry
| Autor: | Pierre Cantegril, Shuva Gautam, Luc LeBel, Baburam Rijal |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Net profit
Linear programming timber license agreement 020209 energy Supply chain Geography Planning and Development Forest management lcsh:TJ807-830 lcsh:Renewable energy sources 02 engineering and technology Management Monitoring Policy and Law Supply and demand lumber wood mill 0202 electrical engineering electronic engineering information engineering lcsh:Environmental sciences 040101 forestry Strategic planning lcsh:GE1-350 Renewable Energy Sustainability and the Environment forest planning pulpwood lcsh:Environmental effects of industries and plants 04 agricultural and veterinary sciences Environmental economics lcsh:TD194-195 Value (economics) Sustainability 0401 agriculture forestry and fisheries Business integrated model |
| Zdroj: | Sustainability Volume 12 Issue 12 Sustainability, Vol 12, Iss 4932, p 4932 (2020) |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su12124932 |
| Popis: | Strategic, tactical, and operation-level forest management plans are commonly formulated by forest planners following even-flow yield principles. Although strategic planning ensures a sustained supply of timber over the long term, it disregards individual mills&rsquo requirements, which leads to discrepancy between supply and demand. We hypothesize that a value-based timber allocation decision, which accounts for individual mills&rsquo demands during tactical level planning, reduces such discrepancy by increasing value over the entire supply chain. Three types of linear programming models were constructed: Model A&mdash status quo volume-maximization model, Model B&mdash supply chain net present value-maximization (NPV) model, and Model C&mdash a novel approach with sub-models embedded that maximize the NPV of individual mills in the allocation decision. Our results showed that only 58% of the annual allowable cut was profitable and the mean net revenue per harvested area was $2455 ha&minus 1 using Model A. The respective values using Models B and C were 64% and $3890 ha&minus 1 and 96% and $4040 ha&minus 1, respectively, showing that Model C generated the highest net revenue for all mills. Such a method of value-based sequential optimization (Model C) will be crucial in sustainable use of forest products and sustaining future bioeconomy, particularly for managing mixed species stands that contain timber suitable for manufacturing a wide range of products with different market values. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|