A mathematical model for strategic management of the forest supply chain considering its products and energy generation

Salomé Rodriguez, Diego Ricardo Broz, Rodolfo Gabriel Dondo and Luis Javier Zeballos

Forest Policy and Economics, 2025, vol. 178, issue C

Abstract: Historically, forestry supply chains have operated in a disjointed manner, leading to insufficient coordination between forest management and wood processing in their planning and operations. In addition, generating energy using the available resources of the forestry activity has been largely considered a secondary activity, with slight synchronization with the remaining chain. However, currently, comprehensive supply chain integration is essential for guaranteeing the economic sustainability of forest supply chains. This article presents a multi-period mixed integer linear programming (MILP) model for forest resource management, covering everything from harvesting to energy generation. It considers supply chain planning, customer selection, and both internal and external raw material sources. The model considers transportation costs, production limits, and the use of specific equipment for processing biomass and industrial waste. Importantly, it includes bioenergy generation, highlighting its economic advantages and role in the overall management of forest supply chains. Analysis of a real-world case from Misiones, Argentina, reveals that meeting wood demand consistently necessitates the exploitation of external forest stands. Moreover, the integration of on-site waste processing equipment within the stands proves economic benefits for the supply chain, whereas incorporating units for processing pulpable logs yields a comparatively smaller economic return. Notably, the study indicates that satisfying potential increases in energy demand is largely contingent on the availability of waste from external sawmills. However, in instances where external sawmill waste is scarce, the plant maintains operational continuity by utilizing alternative byproducts, such as forest biomass chips, which are typically designated for sale.

Keywords: Forest supply chain management; Mixed integer linear programming approach; Energy generation; Integrated strategic and tactical decisions (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:178:y:2025:i:c:s1389934125001145

DOI: 10.1016/j.forpol.2025.103535

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