Forest Supply Chain Optimization applying Generalized Disjunctive Programming

Abstract

The increasing market competitiveness has put the supply chain (SC) optimization into the focus in the last years. In this context, forest SC needs new investments as well as a new business vision in order to keep profitable and satisfy customers needs and social expectations. The provision of renewable energy sources can be one strategic aspect of this supply chain. Therefore, the major objective of this work is to propose a comprehensive forest supply chain including investment, operational and logistic decisions. For this purpose, a mathematical formulation is developed using Generalized Disjunctive Programming as the modeling technique. The mixed integer linear programming model is solved considering a case study from the Argentinian industry.