Economics at your fingertips  

A comparison between individual factories and industrial clusters location in the forest supply chain

Nicolás Vanzetti, Gabriela Corsano and Jorge M. Montagna

Forest Policy and Economics, 2017, vol. 83, issue C, 88-98

Abstract: A mathematical model for optimal supply chain design and planning is presented in this work. The concept of cluster, where several facilities producing different products are closely located, is introduced and specially considered. In order to analyze facilities integration, discounts on investment and production costs are assumed. In addition, tradeoffs between clusters and individual facilities configurations are assessed. The proposed approach is applied to a forest supply chain, where some production plants use the same raw materials while others compete for the use of byproducts and residuals. Results allow for costs reduction when resources and services are shared by plants within a cluster, where, besides, the effect of production scale on the overall SC is also taken into account.

Keywords: Supply chain; Design; Clusters; Forest industry; Optimization (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Forest Policy and Economics is currently edited by M. Krott

More articles in Forest Policy and Economics from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2018-01-24
Handle: RePEc:eee:forpol:v:83:y:2017:i:c:p:88-98