Optimization approaches to tactical planning problems in the forest industry

Sammanfattning: By using decision support tools based on operations research (OR) and optimization in the supply chain in the forest industry, the planning process can be improved and higher profitability can be obtained. The focus of this thesis is on modelling two real-life problems. The problems are united by the facts that they concern tactical (annual) planning in the forest industry, and that the models are developed and tested with real data at Swedish companies.In the first paper, a problem of the supply chain of forest fuel is modelled and solved. The problem of deciding when and where forest residues are to be converted into forest fuel, and how the residues are to be t ransported and stored in order to satisfy demand at heating plants is studied. Decisions also include whether or not additional harvest areas and saw-mills are to be contracted. In addition, we consider the flow of products from saw-mills and import harbours, and address the question about which terminals to use. The planning horizon is one year and monthly time periods are considered. The test data is from Sydved Energileveranser AB.The second paper is a case study from Södra Cell AB. A combined problem of terminal location and ship routing is studied. The objective is to minimize the costs of distributing pulp products from pulp mills to customers (paper mills). Shipping vessels chartered on short or long term are used to transport products to terminals in Europe. In addition, trains and lorries are used for direct transports to customers from mills. From each terminal, the products are transported to customers by lorry, train, or a combination of both. Decisions about which terminals to use, which shipping routes to use, and which other transportation possibilities to use are included.In both problems, relatively large mixed integer programming (MIP) models have been developed and solved using a commercial lp (linear programming) solver. Heuristics have also been developed in both problems in order to obtain faster solutions. Several scenarios of the problems have been tested and evaluated.