Supply chain optimization in the pulp mill industry––IP models, column generation and novel constraint branches

Bredström, David; Lundgren, Jan T.; Rönnqvist, Mikael; Carlsson, Dick; Mason, A. James

doi:10.1016/j.ejor.2003.08.001

Cited by 81 publications

(31 citation statements)

References 7 publications

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“…Thus, forest planning, formerly simple and direct, become highly complex, with different planning levels, concerning large regions and small stands (Church et al, 2000). This becomes even more complicated in multi-business environment (Bredström et al, 2004;Beaudoin et al, 2007). Besides that, with the new customer oriented forest supply chain approach, it is necessary to daily manage the ongoing operations .…”

Section: Forest-based Supply Chainmentioning

confidence: 99%

Overview of MPC applications in supply chains: Potential use and benefits in the management of forest-based supply chains

et al. 2015

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Aim of study: This work aims to provide an overview of Model Predictive Controllers (MPC) applications in supply chains, to describe the forest-based supply chain and to analyse the potential use and benefits of MPC in a case study concerning a biomass supply chain.Area of study: The proposed methods are being applied to a company located in Finland.Material and methods: Supply chains are complex systems where actions and partners’ coordination influence the whole system performance. The increase of competitiveness and need of quick responses to the costumers implies the use of efficient management techniques. The control theory, particularly MPC, has been successfully used as a supply chain management tool. MPC is able to deal with dynamic interactions between the partners and to globally optimize the supply chain performance in the presence of disturbances. However, as far as is authors’ knowledge, there are no applications of this methodology in the forest-based supply chains. This work proposes a control architecture to improve the performance of the forest supply chain. The controller is based on prediction models which are able to simulate the system and deal with disturbances.Main results: The preliminary results enable to evaluate the impacts of disturbances in the supply chain. Thus, it is possible to react beforehand, controlling the schedules and tasks’ allocation, or alert the planning level in order to generate a new plan.Research highlights: Overview of MPC applications in supply chains; forest-based supply chain description; case study presentation: wood biomass supply chain for energy production; MPC architecture proposal to decrease the operation times.Keywords: biomass; forest; Model Predictive Control; planning; supply chain.

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Section: Forest-based Supply Chainmentioning

confidence: 99%

Overview of MPC applications in supply chains: Potential use and benefits in the management of forest-based supply chains

et al. 2015

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“…Only nine papers of all studies have considered multi objectives, and Cakravastia et al (2002) and Grunow et al (2007) are only multi stage models. Bredström et al (2004) presented two models and Wang (2009) considered three. Among constraints, "Inventory", "Flow balance", "Transportation", "Manufacturing and production", and "Demand related" constraints have higher population.…”

Section: Modelingmentioning

confidence: 99%

“…Classification of studied papers in the literature based on decision levels Article Paper's studied Issue SCM level Lakhal et al (2001) Supply chain network structure Strategic Cakravastia et al (2002) Supplier selection Strategic Perea-López et al (2003) Distribution network planning Tactical Chan and Chung (2004a) Order distribution Operational Wu and Golbasi (2004) Facility planning Strategic Wee and Yang (2004) Integration of Supply chain Strategic Chen and Lee (2004) Supply chain scheduling Operational Chan et al (2004) Supply chain collaboration Strategic Chan and Chung (2004b) Distribution network planning Tactical Bredström et al (2004) Transportation + Production scheduling + Distribution Operational Mo et al (2005) Integration of production and distribution systems Operational Chan et al (2006) Distribution network + Production scheduling Operational Venkatadri et al (2006) Manufacturing and distribution planning Tactical Craven (2007) Inventory Operational Herty and Ringhofer (2007) Supply chain network optimization Tactical Grunow et al (2007) Production planning and scheduling + Dispatching l Tactical + Operational Chen et al (2007) Production and distribution planning Tactical Kim et al (2008) Supply chain design Strategic Shirazi et al (2008) Facility relocation Design of distribution network Strategic Pishvaee and Torabi (2010) Closed-loop supply chain network design Strategic Guillen-Gosalbez et al (2010) Deign of production-distribution network Strategic Monteiro et al (2010) Supply chain network design Strategic Paksoy et al (2010) Green supply chain network design Strategic Liao et al (2010) Location-inventory integration + Performance Operational + Tactical Nagurney (2010) Supply chain network design and redesign Strategic Shukla et al (2010) Supply chain network optimization Tactical Wang et al (2011) Green supply chain network design Strategic Liao et al (2011) Integrated location-inventory distribution network Strategic/Tactical/Operatio l* …”

Section: Tablementioning

confidence: 99%

Supply chain network optimization: A review of classification, models, solution techniques and future research

Matinrad¹,

Roghanian²,

Rasi³

2013

10.5267/j.uscm

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“…Such approach could for instance help Linus in his cookie factory to decide how large batches he should run and which ones to prioritize. For instance, Bredström et al (2004) determine daily supply chain decisions, over a planning horizon of three months, in their mixed integer models for a pulp company. However, none of these pay any extra attention on energy issues, despite the energy intensiveness of process industries.…”

Section: Mathematical Modelling In Process Industriesmentioning

confidence: 99%

Planning production and supply chain in energy intensive process industries

Waldemarsson

2014

Linköping Studies in Science and Technology. Dissertations

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To make a difference among the energy intensive process industries, this dissertation addresses production planning and supply chain planning problems related to industrial energy management issues. The energy issue is turning more and more important from different angles, involving price as well as environmental problems due to climate change leading to political pressure on all energy users. The process industry sector is one of the largest users of energy, and thus important to analyse. Process industries are also capital intensive and operate on large and expensive process equipment, making it imperative to plan their production well in order to reach preferable capacity utilisation. Therefore this dissertation strives to locate the most important energy management issues for the long term profitability of process industries, and investigates the symbiotic effects of including energy issues in production and supply chain planning.Three different studies at three case companies are carried out, analysed, and presented in five papers. The cases represent the process industry sectors: chemicals, pulp, and steel. Both qualitative case study methodologies as well as quantitative mathematical modelling and optimisation approaches have been practiced. The research questions are analysed from both an energy system and from a production process point of view, separately as well as combined. Energy is somewhat considered to be the main workforce for process industries and this dissertation exemplifies some of its most important dimensions in this context. Several prerequisites for putting energy management on the strategic agenda are located in a specialty chemical industry where the importance of introducing a strategic perspective on energy, the way energy is used, and the possibilities of increasing alternative revenue from utilising by-and/or co-products differently are pinpointed. Approaches for including energy issues in planning processes are also suggested in terms of a MILP model for the entire supply chain of a pulp company, including decisions on purchase and transportation of raw materials, production allocation, energy mix, and distribution. Another example is presented based on the perspectives of economics of scale and lot sizing through economic order quantity principles in a steel company. By using real company data, energy smart approaches in planning and scheduling are developed with respect to the most important intersections between the production processes and their supporting energy system. The accumulated resource intensity and embedded energy could, and probably should, hence be more fairly reflected in the product price. The research finally shows some possible impact with including energy issues in a production and supply chain planning model. By planning differently, production prioritisations can be done, and it is not only possible without any large investments, but also prosperous with savings on both energy and money within reach.To conclude, planning of production and supply ch...

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Supply chain optimization in the pulp mill industry––IP models, column generation and novel constraint branches

Cited by 81 publications

References 7 publications

Overview of MPC applications in supply chains: Potential use and benefits in the management of forest-based supply chains

Overview of MPC applications in supply chains: Potential use and benefits in the management of forest-based supply chains

Supply chain network optimization: A review of classification, models, solution techniques and future research

Planning production and supply chain in energy intensive process industries

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