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Including energy in supply chain planning at a pulp company

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  • Waldemarsson, Martin
  • Lidestam, Helene
  • Rudberg, Martin

Abstract

In this paper we consider integrated planning of the supply chain at a multi-site pulp company. In addition to the traditional focus on pulp products, also energy aspects are considered, both in the form of raw material and as revenue generating products. The idea is that energy intense raw materials not only gives fiber to the pulp process but also generates an energy surplus that can be used in different ways to create additional value or revenues. The planning horizon is 1year and monthly time periods are considered. Decisions included in the planning are; purchase and transportation of raw materials from harvest areas to pulp mills, production allocation by dividing the production among the pulp mills, energy mix by choosing the energy input at the pulp mills, and distribution of products from mills to customer. An MILP model for the entire supply chain is proposed. A number of different scenarios including real data from the case company are analyzed and evaluated. The aim of the study is thus to investigate the effects on profitability while taking energy issues into consideration.

Suggested Citation

  • Waldemarsson, Martin & Lidestam, Helene & Rudberg, Martin, 2013. "Including energy in supply chain planning at a pulp company," Applied Energy, Elsevier, vol. 112(C), pages 1056-1065.
    • Handle: RePEc:eee:appene:v:112:y:2013:i:c:p:1056-1065
    DOI: 10.1016/j.apenergy.2012.12.032
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    References listed on IDEAS

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    1. Marshman, D.J. & Chmelyk, T. & Sidhu, M.S. & Gopaluni, R.B. & Dumont, G.A., 2010. "Energy optimization in a pulp and paper mill cogeneration facility," Applied Energy, Elsevier, vol. 87(11), pages 3514-3525, November.
    2. Ozdamar, Linet & Birbil, Sevket Ilker, 1999. "A hierarchical planning system for energy intensive production environments," International Journal of Production Economics, Elsevier, vol. 58(2), pages 115-129, January.
    3. Klugman, Sofia & Karlsson, Magnus & Moshfegh, Bahram, 2007. "A Scandinavian chemical wood pulp mill. Part 1. Energy audit aiming at efficiency measures," Applied Energy, Elsevier, vol. 84(3), pages 326-339, March.
    4. Ji, Xiaoyan & Lundgren, Joakim & Wang, Chuan & Dahl, Jan & Grip, Carl-Erik, 2012. "Simulation and energy optimization of a pulp and paper mill – Evaporation plant and digester," Applied Energy, Elsevier, vol. 97(C), pages 30-37.
    5. Gunnarsson, Helene & Rönnqvist, Mikael, 2008. "Solving a multi-period supply chain problem for a pulp company using heuristics--An application to Södra Cell AB," International Journal of Production Economics, Elsevier, vol. 116(1), pages 75-94, November.
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    Cited by:

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    2. Beatrice Marchi & Simone Zanoni, 2017. "Supply Chain Management for Improved Energy Efficiency: Review and Opportunities," Energies, MDPI, vol. 10(10), pages 1-29, October.
    3. Rapine, Christophe & Goisque, Guillaume & Akbalik, Ayse, 2018. "Energy-aware lot sizing problem: Complexity analysis and exact algorithms," International Journal of Production Economics, Elsevier, vol. 203(C), pages 254-263.
    4. Waldemarsson, Martin & Lidestam, Helene & Karlsson, Magnus, 2017. "How energy price changes can affect production- and supply chain planning – A case study at a pulp company," Applied Energy, Elsevier, vol. 203(C), pages 333-347.
    5. Rapine, Christophe & Penz, Bernard & Gicquel, Céline & Akbalik, Ayse, 2018. "Capacity acquisition for the single-item lot sizing problem under energy constraints," Omega, Elsevier, vol. 81(C), pages 112-122.
    6. Mulhall, Rachel Ann & Bryson, John R., 2014. "Energy price risk and the sustainability of demand side supply chains," Applied Energy, Elsevier, vol. 123(C), pages 327-334.

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