Solving Logistical Challenges in Raw Material Reception: An Optimization and Heuristic Approach Combining Revenue Management Principles with Scheduling Techniques

The cost of transportation of raw materials is a significant part of the procurement costs in the forestry industry. As a result, routing and scheduling techniques were introduced to the transportation of raw materials from extraction sites to transformation mills. However, little to no attention has been given to date to the material reception process at the mill. Another factor that motivated this study was the formation of large waiting queues at the mill gates and docks. Queues increase the reception time and associated costs. This work presents the development of a scheduling and reception system for deliveries at a mill. The scheduling system is based on Trucking Appointment Systems (TAS), commonly used at maritime ports, and on revenue management concepts. The developed system allocates each delivery to a timeslot and to an unloading dock using revenue management concepts. Each delivery is segmented according to its priority. Higher-segment deliveries have priority when there are multiple candidates to be allocated for one timeslot. The developed scheduling system was tested on a set of 120 daily deliveries at a Portuguese paper pulp mill and led to a reduction of 66% in the daily reception cost when compared to a first-in, first-out (FIFO) allocation approach. The average waiting time was also significantly reduced, especially in the case of high-priority trucks.