Long-range timber supply planning for a vertically integrated paper mill

Philip C. Jones and Jeffrey W. Ohlmann

European Journal of Operational Research, 2008, vol. 191, issue 2, pages 558-571

Abstract: We consider a vertically integrated papermaking operation composed of an integrated pulp and paper mill with its regional supply network. Considering land procurement and harvest rotation as strategic decision variables, we construct a model to establish a long-range timber supply plan that minimizes the total discounted cost of meeting annual virgin wood fiber demand over an infinite horizon. Under appropriate assumptions on costs and storage, the land procurement and harvest rotation decisions are separable with harvest rotation being determined via a forest economics-type equation and land procurement being determined by a newsvendor-type equation.

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European Journal of Operational Research is edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

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