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Integrated optimization of strategic and tactical planning decisions in forestry

Author

Listed:
  • Bouchard, M.
  • D’Amours, S.
  • Rönnqvist, M.
  • Azouzi, R.
  • Gunn, E.

Abstract

The traditional approach to plan the forest products value chain using a combination of sequential and hierarchical planning phases leads to suboptimal solutions. We present an integrated planning model to support forest planning on the long term with anticipation of the impacts on the economic and logistic activities in the forest value chain on a shorter term, and we propose a novel optimization approach that includes acceleration strategies to efficiently solve large-scale practical instances of this integrated planning problem. Our model extends and binds the models implemented in two solver engines that have developed in previous work. The first system, called Logilab, allows for defining and solving value chain optimization problems. The second system, called Silvilab, allows for generating and solving strategic problems. We revisit the tactical model in Logilab and we extend the strategic model in Silvilab so that the integrated planning problem can be solved using column generation decomposition with the subproblems formulated as hypergraphs and solved using a dynamic programing algorithm. Also, a new set of spatial sustainability constraints is considered in this model. Based on numerical experiments on large-scale industrial cases, the integrated approach resulted in up to 13% profit increase in comparison with the non-integrated approach. In addition, the proposed approach compares advantageously with a standard LP column generation approach to the integrated forest planning problem, both in CPU time (with an average 2.4 factor speed-up) and in memory requirement (with an average reduction by a factor of 20).

Suggested Citation

  • Bouchard, M. & D’Amours, S. & Rönnqvist, M. & Azouzi, R. & Gunn, E., 2017. "Integrated optimization of strategic and tactical planning decisions in forestry," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1132-1143.
  • Handle: RePEc:eee:ejores:v:259:y:2017:i:3:p:1132-1143
    DOI: 10.1016/j.ejor.2016.11.022
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    References listed on IDEAS

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    1. Schneeweiss, Christoph, 2003. "Distributed decision making--a unified approach," European Journal of Operational Research, Elsevier, vol. 150(2), pages 237-252, October.
    2. George B. Dantzig & Philip Wolfe, 1960. "Decomposition Principle for Linear Programs," Operations Research, INFORMS, vol. 8(1), pages 101-111, February.
    3. Andres Weintraub & Daniel Navon, 1976. "A Forest Management Planning Model Integrating Silvicultural and Transportation Activities," Management Science, INFORMS, vol. 22(12), pages 1299-1309, August.
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    Cited by:

    1. Cantegril, Pierre & Paradis, Gregory & LeBel, Luc & Raulier, Frédéric, 2019. "Bioenergy production to improve value-creation potential of strategic forest management plans in mixed-wood forests of Eastern Canada," Applied Energy, Elsevier, vol. 247(C), pages 171-181.
    2. Luo, Li & O'Hehir, Jim & Regan, Courtney M. & Meng, Li & Connor, Jeffery D. & Chow, Christopher W.K., 2021. "An integrated strategic and tactical optimization model for forest supply chain planning," Forest Policy and Economics, Elsevier, vol. 131(C).
    3. Baburam Rijal & Luc LeBel & Shuva H. Gautam & Pierre Cantegril, 2020. "A Sequential Optimization Approach in Tactical Planning for Value Creation in the Forest Products Industry," Sustainability, MDPI, vol. 12(12), pages 1-23, June.
    4. Henrique Piqueiro & Reinaldo Gomes & Romão Santos & Jorge Pinho de Sousa, 2023. "Managing Disruptions in a Biomass Supply Chain: A Decision Support System Based on Simulation/Optimisation," Sustainability, MDPI, vol. 15(9), pages 1-25, May.
    5. Santos, Andreia & Carvalho, Ana & Barbosa-Póvoa, Ana Paula & Marques, Alexandra & Amorim, Pedro, 2019. "Assessment and optimization of sustainable forest wood supply chains – A systematic literature review," Forest Policy and Economics, Elsevier, vol. 105(C), pages 112-135.
    6. Marques, Alexandra & Soares, Ricardo & Santos, Maria João & Amorim, Pedro, 2020. "Integrated planning of inbound and outbound logistics with a Rich Vehicle Routing Problem with backhauls," Omega, Elsevier, vol. 92(C).
    7. Ouhimmou, Mustapha & Rönnqvist, Mikael & Lapointe, Louis-Alexandre, 2021. "Assessment of sustainable integration of new products into value chain through a generic decision support model: An application to the forest value chain," Omega, Elsevier, vol. 99(C).
    8. Darvish, Maryam & Coelho, Leandro C., 2018. "Sequential versus integrated optimization: Production, location, inventory control, and distribution," European Journal of Operational Research, Elsevier, vol. 268(1), pages 203-214.

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