Using mixed integer programming models to synchronously determine production levels and market prices in an integrated market for roundwood and forest biomass

Kong, Jiehong; Rönnqvist, Mikael; Frisk, Mikael

doi:10.1007/s10479-013-1450-0

Cited by 4 publications

(3 citation statements)

References 27 publications

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“…In an integrated market, there may be competition between heat generation and pulp because pulpwood can be used as raw material in both Kong et al 2015 Improvements to the model published in 2012 to address long-term planning; they presented a new approach that can jointly choose areas and define price levels for different assortments at the chosen supply points of the biomass supply chain (BSC) in the longterm planning Sawlogs, pulpwood, forest residues, wood chips, and bark Heat, pulp, and wood products…”

Section: Discussionmentioning

confidence: 99%

Forest biomass supply chain optimization for a biorefinery aiming to produce high-value bio-based materials and chemicals from lignin and forestry residues: a review of literature

Dessbesell

Pulkki

et al. 2017

Can. J. For. Res.

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Technological development has enabled the production of new value-added products from lignocellulosic residues such as lignin. This has allowed the forest industry to diversify its product portfolio and maximize the economic returns from feedstock, while simultaneously working towards sustainable alternatives to petroleum-based products. Although previous research has explored industrial-scale production opportunities, many challenges persist, including the cost of woody biomass and its supply chain reliability. While numerous studies have addressed these issues, their emphasis has traditionally been on bioenergy, with little focus on biochemical, biomaterials, and bioproducts. This review seeks to address this gap through a systematic study of the work recently reported by researchers. A lot of work has been published from United States and Canada with an emphasis on bioenergy production (84.8%), 4.6% of the work is focused on biomass to materials and chemicals, and 10.6% addressed both. Between 2012 and 2015, the majority of published research focused on biomass to materials and chemicals and both biomass to energy and biomass to materials and chemicals. This fact highlights recent interests in diversified biorefinery portfolios. However, further work concerning forest biomass supply chain optimization and new high-value bio-based materials and chemicals is necessary.Key words: biomass to energy, biomass to materials and chemicals, economic optimization, lignocellulosic residues, value-added bio-based products.Résumé : Des avancées technologiques ont rendu possible la production de nouveaux produits à valeur ajoutée à partir de résidus lignocellulosiques tels que la lignine. Cela a permis à l'industrie forestière de diversifié sa gamme de produits et de maximiser les retombées économiques de la matière première tout en travaillant simultanément à développer des alternatives durables aux produits à base de pétrole. Bien que les travaux de recherche précédents aient exploré les opportunités de production à l'échelle industrielle, plusieurs défis persistent, incluant le coût de la biomasse ligneuse et la fiabilité de sa chaîne logistique. Alors que de nombreuses études se sont intéressées à ces questions, l'accent a traditionnellement été mis sur la bioénergie et très peu sur les bioproduits : produits biochimiques et biomatériaux. Cette revue de littérature vise à combler cette lacune par le biais d'une étude systématique des travaux récemment publiés par les chercheurs. Beaucoup de travaux publiés aux États-Unis et au Canada mettent l'accent sur la production de bioénergie (84,8 %), 4,6 % des travaux portent sur la transformation de la biomasse en matériaux et produits chimiques et 10,6 % s'intéressent aux deux sujets. La majorité des travaux de recherche publiés entre 2012 et 2015 portent sur la transformation de la biomasse en matériaux et produits chimiques et sur les deux sujets, soit la transformation de la biomasse en énergie, matériaux et produits chimiques. Cela met en évidence l'intérêt récen...

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Section: Discussionmentioning

confidence: 99%

Forest biomass supply chain optimization for a biorefinery aiming to produce high-value bio-based materials and chemicals from lignin and forestry residues: a review of literature

Dessbesell

Pulkki

et al. 2017

Can. J. For. Res.

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“…The costs are often approximated depending on the estimated composition of assortments and volumes and the distance to mills. Some general cases where the costs are nonlinear were described by Kong et al (2015). The competition between different companies is hard to describe, and there is little research published on this specific aspect.…”

Section: Phase 1: Acquiring Supply Areasmentioning

confidence: 99%

Game—The Transportation Game

Abasian

Rönnqvist

Marier

et al. 2020

INFORMS Transactions on Education

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This paper presents an online educational game focusing on hierarchical procurement planning in a simulated forest supply chain with multiple companies. The purpose is to provide an understanding of the importance of individual decisions and their mediumto long-term impacts on the entire supply chain. The transportation game comprises three phases, each simulating hierarchical decision making when three competing companies (i.e., the game players) are making simultaneous decisions on the available resources. Each game phase also requires concurrent collaboration and competition. The phases represent different planning levels from long-term to short-term planning, considering the collaboration concept within the supply chain. The simulated supply chain objective is to minimize resource purchasing and transportation costs. The purchasing cost will be fixed after the first phase. The chance of decreasing transportation costs, however, is available until the end of the game. We develop three optimization models for each game phase. Once the game is finished, it compares the players' results with optimal solutions prepared upfront. Finally, we present some comments about the game experience in various classrooms.

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“…Mixed integer programming (MIP) has been used to synchronously estimate monthly production levels, harvest areas, and market prices for a study area in Sweden. The study involved, timber logs, biofuel residues, multiple market locations, and detailed estimates of harvest and transport costs over 12 planning periods [46]. The intensity of harvest was allowed to vary depending on demand for forest residues.…”

Section: Timber Transport Planningmentioning

confidence: 99%

Constrained Optimization for Addressing Forest-Wide Timber Production

Hoganson

Meyer

2015

Curr Forestry Rep

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Optimization models are important tools for integrating objectives in forest management planning. Timber management objectives are difficult to address without considering complex environmental conditions, other ownership objectives, and forest management policies. Typically, to learn about management opportunities, model applications involve multiple scenarios and tradeoff analysis. Study areas tend to be large with analyses challenging because of model size needs for addressing many facets of the situation. The trend is to decompose large problems into linked subproblems with feedback between analyses. A better understanding of forest management situations can be obtained by integrating forest management decision-making with timber supply chain analyses developed from wood users' perspectives. Uncertainty surrounds forest management decision-making situations, with analyses expanding recently to address strategies for collecting forest inventory information and recourse opportunities to help reduce risks associated with an uncertain future.

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Using mixed integer programming models to synchronously determine production levels and market prices in an integrated market for roundwood and forest biomass

Cited by 4 publications

References 27 publications

Forest biomass supply chain optimization for a biorefinery aiming to produce high-value bio-based materials and chemicals from lignin and forestry residues: a review of literature

Forest biomass supply chain optimization for a biorefinery aiming to produce high-value bio-based materials and chemicals from lignin and forestry residues: a review of literature

Game—The Transportation Game

Constrained Optimization for Addressing Forest-Wide Timber Production

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