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

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  • Jones, Philip C.
  • Ohlmann, Jeffrey W.

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.

Suggested Citation

  • Jones, Philip C. & Ohlmann, Jeffrey W., 2008. "Long-range timber supply planning for a vertically integrated paper mill," European Journal of Operational Research, Elsevier, vol. 191(2), pages 558-571, December.
    • Handle: RePEc:eee:ejores:v:191:y:2008:i:2:p:558-571
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    References listed on IDEAS

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    5. Bredstrom, David & Lundgren, Jan T. & Ronnqvist, Mikael & Carlsson, Dick & Mason, Andrew, 2004. "Supply chain optimization in the pulp mill industry--IP models, column generation and novel constraint branches," European Journal of Operational Research, Elsevier, vol. 156(1), pages 2-22, July.
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    Cited by:

    1. Sun, Xing & Zhang, Daowei, 2011. "An event analysis of industrial timberland sales on shareholder values of major U.S. forest products firms," Forest Policy and Economics, Elsevier, vol. 13(5), pages 396-401, June.

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