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Forest Management: A Multicommodity Flow Formulation and Sensitivity Analysis

Author

Listed:
  • Antoine Gautier

    (Faculté des Sciences de ÍAdministration, Université Laval, Ville de Québec, Québec, Canada G1K 7P4)

  • Frieda Granot

    (Faculty of Commerce and Business Administration, The University of British of Columbia, Vancouver, British Columbia, Canada V6T 1Z8)

Abstract

We formulate the Forest Management Problem as a Multicommodity Network Flow Problem with a convex cost function. We then show how to transfer the problem to an equivalent Single-Commodity Network Flow formulation in order to address several sensitivity analysis questions using results by Granot and Veinott (Granot, F., A. F. Veinott, Jr. 1985. Substitutes, complements and ripples in network flows. Math. Oper. Res. 10 471--497.). The answers can subsequently be used to help forest managers respond to changes in the environment such as fires or changes in market prices, without any additional computation. Furthermore, the characterization of the response we provide requires no prior knowledge of optimal management policies.

Suggested Citation

  • Antoine Gautier & Frieda Granot, 1995. "Forest Management: A Multicommodity Flow Formulation and Sensitivity Analysis," Management Science, INFORMS, vol. 41(10), pages 1654-1668, October.
    • Handle: RePEc:inm:ormnsc:v:41:y:1995:i:10:p:1654-1668
    DOI: 10.1287/mnsc.41.10.1654
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    Citations

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    Cited by:

    1. Antoine Gautier & Bernard F. Lamond & Daniel Paré & François Rouleau, 2000. "The Québec Ministry of Natural Resources Uses Linear Programming to Understand the Wood-Fiber Market," Interfaces, INFORMS, vol. 30(6), pages 32-48, December.
    2. Khodakaram Salimifard & Sara Bigharaz, 2022. "The multicommodity network flow problem: state of the art classification, applications, and solution methods," Operational Research, Springer, vol. 22(1), pages 1-47, March.

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