Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario

The production planning models used in the forest products industry do not recognize the demand and supply uncertainty, and as such do not work in unison with the inventory management models. An integrated production planning and inventory management model of a forest products industry is developed...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Shashi Shahi, Reino Pulkki, Mathew Leitch, Christopher Gaston
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2017
Materias:	forest products industry simulation-based optimization supply uncertainty demand uncertainty supply chain management Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/1f24b8abf5e845c38a800bb0d0f46bc7
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:1f24b8abf5e845c38a800bb0d0f46bc7
record_format	dspace
spelling	oai:doaj.org-article:1f24b8abf5e845c38a800bb0d0f46bc72021-12-02T14:07:31ZOptimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario2331-197510.1080/23311975.2017.1370765https://doaj.org/article/1f24b8abf5e845c38a800bb0d0f46bc72017-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2017.1370765https://doaj.org/toc/2331-1975The production planning models used in the forest products industry do not recognize the demand and supply uncertainty, and as such do not work in unison with the inventory management models. An integrated production planning and inventory management model of a forest products industry is developed in this paper. The objective is to maximize the net annual profit of the forest industry under demand and supply uncertainty. The model is formulated as a simulation-based optimization model. A case study of a pulp mill in Northwestern Ontario shows that supply and demand uncertainty causes a net annual loss of $59.9 million to the pulp mill, whereas the introduction of a merchandizing yard in the supply chain not only absorbs shocks caused due to uncertainty, but also increases the net annual profit of the pulp mill to $26.7 million. However, the merchandizing yard is viable only if the sales price of pulp is above a threshold level. The integrated supply chain model can be applied to any forest products industry as it considers the entire supply chain structure and manages all business decisions both upstream and downstream in the supply chain.Shashi ShahiReino PulkkiMathew LeitchChristopher GastonTaylor & Francis Grouparticleforest products industrysimulation-based optimizationsupply uncertaintydemand uncertaintysupply chain managementBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 4, Iss 1 (2017)
institution	DOAJ
collection	DOAJ
language	EN
topic	forest products industry simulation-based optimization supply uncertainty demand uncertainty supply chain management Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	forest products industry simulation-based optimization supply uncertainty demand uncertainty supply chain management Business HF5001-6182 Management. Industrial management HD28-70 Shashi Shahi Reino Pulkki Mathew Leitch Christopher Gaston Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario
description	The production planning models used in the forest products industry do not recognize the demand and supply uncertainty, and as such do not work in unison with the inventory management models. An integrated production planning and inventory management model of a forest products industry is developed in this paper. The objective is to maximize the net annual profit of the forest industry under demand and supply uncertainty. The model is formulated as a simulation-based optimization model. A case study of a pulp mill in Northwestern Ontario shows that supply and demand uncertainty causes a net annual loss of $59.9 million to the pulp mill, whereas the introduction of a merchandizing yard in the supply chain not only absorbs shocks caused due to uncertainty, but also increases the net annual profit of the pulp mill to $26.7 million. However, the merchandizing yard is viable only if the sales price of pulp is above a threshold level. The integrated supply chain model can be applied to any forest products industry as it considers the entire supply chain structure and manages all business decisions both upstream and downstream in the supply chain.
format	article
author	Shashi Shahi Reino Pulkki Mathew Leitch Christopher Gaston
author_facet	Shashi Shahi Reino Pulkki Mathew Leitch Christopher Gaston
author_sort	Shashi Shahi
title	Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario
title_short	Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario
title_full	Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario
title_fullStr	Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario
title_full_unstemmed	Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario
title_sort	optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: case study of a pulp mill in ontario
publisher	Taylor & Francis Group
publishDate	2017
url	https://doaj.org/article/1f24b8abf5e845c38a800bb0d0f46bc7
work_keys_str_mv	AT shashishahi optimalproductioninventorymodelforforestproductsindustrysupplychainunderdemandandsupplyuncertaintycasestudyofapulpmillinontario AT reinopulkki optimalproductioninventorymodelforforestproductsindustrysupplychainunderdemandandsupplyuncertaintycasestudyofapulpmillinontario AT mathewleitch optimalproductioninventorymodelforforestproductsindustrysupplychainunderdemandandsupplyuncertaintycasestudyofapulpmillinontario AT christophergaston optimalproductioninventorymodelforforestproductsindustrysupplychainunderdemandandsupplyuncertaintycasestudyofapulpmillinontario
_version_	1718391949335986176

Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario

Ejemplares similares