Integrating Optimization and Simulation For Supply Chain Tactical Planning in The Forest Products Industry
Integrating Optimization and Simulation For Supply Chain Tactical Planning in The Forest Products Industry
Abstract: This paper addresses a tactical planning problem in a supply chain network in the forest products industry.
We present a mathematical model that aims at integrating data coming from simulation tools (FPInterface and Optitek)
with an optimization model (LogiOpt). This mathematical model aims at planning at the same time harvesting,
transportation and production operations.
* Corresponding Author: [email protected] These simulators allow for the evaluation of costs and
productivity levels. Moreover, they predict the finished
ILS’2012 - August 26-29, 2012 - Quebec - Canada
products which can be obtained depending on the wood operations synchronization in the network helps
resource, its physical characteristics and technologies generating a greater value from the network and
used in the mill for wood transformation. resources.
2.3 Transportation
2 Problem
Logs are first stacked along the forest roads and are then
transported to compatible mills (volumes of wood from
2.1 Forest products supply chain a given block can be allocated to many different mills).
In this transportation stage, it is necessary to determine
The lumber production supply chain is a complex the volume to transport, what type of equipment
system made up of harvest areas in forests, harvesting (transportation mode) is to be used, what the best
and transportation systems, and mills. Figure 1 shows a routing decisions, etc. are. There exist different types of
simplified example of a supply chain (a real network trucks to move logs with various lengths. The
may contains hundreds of harvest areas). Better transportation mode will also vary depending on the
ILS’2012 - August 26-29, 2012 - Quebec - Canada
geographical location of the harvesting areas. over the finished products obtained (Gaudreault et
Transportation can be done with a single transportation al., 2010). Moreover, the quantities associated with each
mode or a combination of different ones. product will be different according to the harvest area
and the harvesting system that were used.
3.1 FPInterface
FPInterface computes costs associated to supplying a 3.3 Limitations of the current system
mill from a given harvest area and identifies which type
of log would be obtained using different harvesting
system. The combination of both applications allows
anticipating the economic value generated by a
Users can visualize data through a map, which makes harvesting area allocated to a mill. It therefore helps the
interpreting results easier (Figure 5). manager to establish a reasonable plan.
3.2 Optitek
4 Proposed optimization-simulation
Optitek (Figure 6) is a simulator for sawmill operations. integration
Each machine in the production line can be modeled
through different modules. When a log description is We propose that an optimization module, called
provided, Optitek can forecast the lumber production LogiOpt, be added to the integrated FPInterface-Optitek
which would be obtained from the mill. system. Figure 7 shows a schematic view of the
interconnections between the simulation tools and
optimization module as well as the data flow between
them.
ILS’2012 - August 26-29, 2012 - Quebec - Canada
Ym,t Constraints
The binary variable takes the value 1 when the
mill u is configured as sawmilling modes Maximum allowable harvest:
m :{ 1… M} at the period t, 0 otherwise.
V b,r ,t s b b B (1)
bB rR t{1,..,T }
Objective function
Harvested volumes:
The objective function is to maximize profit by taking
into account sales, transportation costs, harvest costs H b,r,f ,t k b,r,f Vb,r,t b B, r R (2)
and mills costs. The harvesting fixed costs and
f F , t 1,..., T
sawmilling fixed costs have been taken into account
only in order to calculate the net value of the supply
chain.
Sawmill capacity:
MAX [ s b
X b,r , f ,n,u ,t u,t u U , t 1,..., T (3)
V b,r ,t ] b bB rR f F nN
bB rR t{1,...,T } bB
[ V b,r ,t g b,r b,r ]
bB rR t{1,...,T } bB rR
Mill operations:
[ Q b,r , f ,u ,t b,r , f ,u ]
Z p , m , u , t ( X b , r , f , m ,u ,t b , r , f , p , m , u )
bB rR f F uU t{1,...,T }
p P (5)
[ X b,r , f ,n,u ,t wu ] cu bB rR f F
bB rR f F nN uU t{1,...,T } uU m 1,..., M , u U , t 1,...,T
N
Vb,r,t T μb,r,f,p,n,u
Sb kb,r,f P
Hb,r,f,t F Cu
Ψb ξr,b U
Xb,r,f,n,u,t wu фp,u
Qb,r,f,u,t ρb,r
Zp,n,u,t gb,r
Y n,t αu,t
I b,r,f,t βu,t
Jb,r,f,u,t Cu
Wu
ib,r,f,0
jb,r,f,u,0
LogiOpt
Optimization
f F , n=1,,N, u U , t 1,...,T Constraints (6) and (7) ensure that a mill can be config-
ured according to only one sawmilling mode.
Where M is a large positive number.
Constraints (8) and (9) calculate the inventory of prod-
Equilibrium flow (harvest area): ucts for each harvest area and constraints (10) and (11)
calculate inventory at the mill.
J b,r , f ,u,1 j b,r , f ,u,0 Qb,r , f ,u,1 X b,r , f ,n,u,1 (10) 6.1 Validation of the optimization model
nN with a simplified case.
s1 : 100 m 3 s2 : 50 m 3
b1 ψ 1 : 1000$ ψ2 : 1000$ b2
g1 : 10$ g2 : 10$
ξ1,1 :5$ ξ 2,1 :5$
K1,1,1 :50 %
K2,1,1 :100 %
K1,1,2 : 45 %
f1 f1
f2
ρ 2,1,1,2 :50$/m 3
ρ 1,1,2,1 :50$/m 3
N: 1 N: 1
u1 c:1500$ c:1500$ u2
w:10$/m 3 w:10$/m 3
α:100 m 3 α:50 m 3
μ1,1,1,2,1,1,1:10 unit/m3
μ1,1,1,1,1,1:12 unit/m3 μ1,1,1,2,1,1,1:15 unit/m3
μ1,1,2,2,1,1,1:5 unit/m3
μ1,1,2,1,1,1,1:5 unit/m3 μ2,1,1,1,1,1,1:10 unit/m3
μ2,1,1,2,1,1:10 unit/m3
μ2,1,1,1,1,1:10 unit/m3
p1
p2 p2
Ф1,2 : 10$/unit
Ф2,1 : 15$/unit
Ф1,1 : 10$/unit
Figure 8. Simplified example of the forest product network