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Author: | Bredström, D. (et al.) |
Title: | Supply chain optimization in the pulp mill industry - IP models, column generation and novel constraint branches |
Journal: | European Journal of Operational Research
2004 : JUL, VOL. 156:1, p. 2-22 |
Index terms: | Production planning Branch and bound methods Production scheduling Integer programming Supply chain management Paper and pulp industry Scandinavia |
Language: | eng |
Abstract: | The authors study the supply chain problem of a large international pulp producer with five pulp mills located in Scandinavia. The authors have developed two new mixed integer models that determine daily supply chain decisions over a planning horizon of three months. One model is based on column generation, where the generation phase is to find new production plans using a shortest path network. The second has the daily production decisions explicitly included in the model. The paper also introduces a novel constraint branching heuristic. The presented solution methods produce solutions that are both useful and more effective compared with the manually generated schedules. The tradeoff between recipe changes and storage is the most important startegic implication of this study. |
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