An Optimization Model for Tactical Planning of Wood Procurement

This paper presents a new LP (Linear Programming) model to solve a tactical wood procurement and harvesting problem. This optimization problem occurs in several wood supply chains today. The goal with the optimization is to find a 12 month procurement, harvesting and transportation plan that minimizes total costs. The case study is found in one of the Finnish wood supply chains and the model is implemented to aid the decision making process. The focus of the paper is on the modeling of some phenomena peculiar to wood procurement.