Pulp and Paper p p

Supply Chain Management ppy g

2009Summer School 2009 Summer School
Supply Chain and Transportation Optimization withintheForest Industry
Mikael Rnnqvist
The Norwegian School of Economics and Business Administration, Bergen, Norway
The Forestry Research Institute of Sweden (Skogforsk), Uppsala, Sweden
Outline Outline
Introductiontopulpandpaper supplychain Introductionto pulpand paper supplychain
management (SCM)
StrategicSCM
Terminal location transport modeselection Terminal location, transport mode selection
Tactical SCM
Productionplanning, collaborationin transportation
Operational SCM Operational SCM
Routing, process control
References References
D. Carlsson, S. DAmours, A. Martel and M. Rnnqvist, Supply chain management in the pulp and paper
industry, to appear in INFOR.
M. Frisk, M. Gthe-Lundgren, K. J rnstenand M. Rnnqvist, Cost allocation in collaborative forest transportation,
accepted for publication in European Journal of Operational Research.
P. Flisberg, M. Rnnqvist and S. Nilsson, Billerudoptimizes its bleaching process using online optimization, Interfaces,
Vol. 39, No. 2, 119-132, 2009.
P. Flisberg, B. Lidenand M. Rnnqvist, A hybrid method based on linear programming and tabusearch for routing of
logging trucks, Computers & Operations Research, Vol. 36, 1122-1144, 2009.
S. DAmours, M. Rnnqvist and A. Weintraub, Using Operational Research for supply chain planning in the forest
product industry, INFOR, Vol. 46, No. 4, 47-64, 2008.
H. Gunnarsson and M. Rnnqvist, Solving a multi-period supply chain for a pulp company using heuristics An
application to Sdracell AB, International Journal of Production Economics, Vol. 116, 75-94, 2008.
G. Andersson, P. Flisberg, B. Lidenand M. Rnnqvist, RuttOpt A decision support system for routing of logging
trucks, Canadian Journal of Forest Research, Vol. 38, 1784-1796, 2008.
H. Gunnarsson, M. Rnnqvist and D. Carlsson, A combined terminal location and ship routing problem, Journal of the
Operational Research Society, Vol. 57, 928-938, 2006.
M. Forsberg, M. Frisk, and M. Rnnqvist, FlowOpt a decision support tool for strategic and tactical transportation g, , q , p pp g p
planning in forestry, International Journal of Forest Engineering, Vol. 16, No. 2, pp. 101-114, J uly 2005.
D. Carlssonand M. Rnnqvist, Supply chain management in forestry case studies at SdraCell AB, European Journal
of Operational Research, Vol 163, pp. 589-616, 2005.
D. Bredstrm, J . T. Lundgren, M. Rnnqvist, D. Carlssonand A. Mason, Supply chain optimization in the pulp mill , g , q , , ppy p p p
industry IP models, column generation and novel constraint branches, European Journal of Operational Research, Vol
156, pp 2-22, 2004.
Introduction Introduction
A ti i t d d l t f th l b l fl f d fib Anticipated development of the global flow of wood fibres
(Source: Axelsson, Sdra Cell AB)
Illustration of the global producers by country. (Source Jaako Pyry)
Procurement Production Distribution Sales
Strategic
Woodprocurement strategy Locationdecisions Warehouselocation Selectionof markets
The Pulp and Paper Supply Chain Planning Matrix.
Strategic
Wood procurement strategy
(privatevs public land)
Forest land acquisitions and
harvesting contracts
Silvicultural regimeand
regeneration strategies
Harvestingandtransportation
Location decisions
Outsourcing decisions
Technology and
capacity investments
Product family
allocation to facilities
Order penetrationpoint
Warehouselocation
Allocation of
markets/customers to
warehouse
Investment in logistics
resources (e.g.
warehouse, handling
Selection of markets
(e.g. location,
segment) customer
segmentation
Product-solution
portfolio
Pricing strategy
Harvesting and transportation
technology and capacity
investment
Transportation strategy and
investment (e.g. roads
construction, trucks, wagons,
terminal, vessels, etc.)
Order penetration point
strategy
Investment in
information technology
and planning systems
(e.g. advanceplanning
and scheduling
technologies, vessels)
Contracts with
logistics providers
Investment in
information
technology and
l i t (
Services strategy
Contracts
Investment in
information
technology and
planning systems (e.g.
planning systems(e.g.
warehouseexecution
On-linetracking
system, CRM)
Tactical
Sourcing plan (log class
planning)
Harvesting aggregate
planning
Campaigns duration
Product sequencing in
campaign
Lot-sizing
Warehouse
management policies
(e.g. dock
management)
S l i
Aggregatedemand
planning per segment
Customer contracts
Demand forecasting,
Routedefinition and
transshipment yard location
and planning
Allocation of harvesting and
transportation equipment to
cutting blocs and
All ti f d t/bl t
Outsourcing planning
(e.g. external
converting)
Seasonal inventory
target
Parent roll assortment
Seasonal inventory
target at DCs
Routing (Vessel, train
and truck)
3PL contracts
safety stocks
Availableto promise
aggregateneed and
planning
Availableto promise
allocation rules
(i l di ti i Allocation of product/bloc to
mills
Yard layout design
Log yard management
policies

optimization
Temporary mill
shutdowns

(including rationing
rules and substitution
rules)
Allocation of product
and customer to mills
and distribution
centers

Operational
Detailed log supply planning
Forest to mills
daily carrier selection and
routing
Pulp mills/paper
machines/winders/
sheeters daily
production plans
Mills to
Warehouses/DCs
inventory
management.
DCs to customer
daily carrier selection
Availableto promise
consumption
Rationing
Onlineordering
Customer inventory
converters/DCs/
customers daily carrier
selection and routing
Roll-cutting
Process control
and routing
Vehicleloads

Customer inventory
management and
replenishment

Planning horizon and scope of the reviewed literature
Strategicplanning Strategicplanning
Supplychain Supplychain
design at Sdra Cell g
The Sdra Group
Sdra Cell
Processing wood into pulp
Sdra Skog
Purchasing and trading
Processing wood into pulp
Five mills
Producing 2 million tons
P i 9 illi bi t
Purchasing and trading
12,5 million cubic meters
Five regions, 51 districts
Processing 9 million cubic meters
Sdra Timber
Processing logs into sawn timber
Six mills
Producing 1 million cubic meters
Processing 2 million cubic meters g
Case: SdraCell - mills
Sdra Cell in total
Capacity: ~2 million tons
Case: Sdra Cell mills
Capacity: 2 million tons
Wood: ~9 million cu.m.*
*cu.m. = cubic meters, solid under bark
Cust omers
SKOGN SKOGN SKOGN SKOGN SKOGN SKOGN SKOGN SKOGN SKOGN
Terminaler
Folla (4)
Svenska (17)
Svenska, Tofte (2)
Tofte (7)
Termi nal s
HALDEN HALDEN HALDEN HALDEN HALDEN HALDEN HALDEN HALDEN HALDEN
HNEFOSS HNEFOSS HNEFOSS HNEFOSS HNEFOSS HNEFOSS HNEFOSS HNEFOSS HNEFOSS
GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH GRANGEMOUTH
CORPACH CORPACH CORPACH CORPACH CORPACH CORPACH CORPACH CORPACH CORPACH
INVERNESS INVERNESS INVERNESS INVERNESS INVERNESS INVERNESS INVERNESS INVERNESS INVERNESS
ABERDEEN ABERDEEN ABERDEEN ABERDEEN ABERDEEN ABERDEEN ABERDEEN ABERDEEN ABERDEEN
DUNDEE DUNDEE DUNDEE DUNDEE DUNDEE DUNDEE DUNDEE DUNDEE DUNDEE
SUNDERLAND SUNDERLAND SUNDERLAND SUNDERLAND SUNDERLAND SUNDERLAND SUNDERLAND SUNDERLAND SUNDERLAND
TERNEUZEN TERNEUZEN TERNEUZEN TERNEUZEN TERNEUZEN TERNEUZEN TERNEUZEN TERNEUZEN TERNEUZEN
EMDEN EMDEN EMDEN EMDEN EMDEN EMDEN EMDEN EMDEN EMDEN
NORTHFLEET NORTHFLEET NORTHFLEET NORTHFLEET NORTHFLEET NORTHFLEET NORTHFLEET NORTHFLEET NORTHFLEET
CHATHAM CHATHAM CHATHAM CHATHAM CHATHAM CHATHAM CHATHAM CHATHAM CHATHAM
LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT
HULL HULL HULL HULL HULL HULL HULL HULL HULL
ANTWERPEN ANTWERPEN ANTWERPEN ANTWERPEN ANTWERPEN ANTWERPEN ANTWERPEN ANTWERPEN ANTWERPEN
GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY
BREMEN BREMEN BREMEN BREMEN BREMEN BREMEN BREMEN BREMEN BREMEN
STETTIN STETTIN STETTIN STETTIN STETTIN STETTIN STETTIN STETTIN STETTIN
WESEL WESEL WESEL WESEL WESEL WESEL WESEL WESEL WESEL
KIEL KIEL KIEL KIEL KIEL KIEL KIEL KIEL KIEL
GHENT GHENT GHENT GHENT GHENT GHENT GHENT GHENT GHENT
BOULOGNE BOULOGNE BOULOGNE BOULOGNE BOULOGNE BOULOGNE BOULOGNE BOULOGNE BOULOGNE
BASEL BASEL BASEL BASEL BASEL BASEL BASEL BASEL BASEL
GENUA GENUA GENUA GENUA GENUA GENUA GENUA GENUA GENUA
LA PALLICE LA PALLICE LA PALLICE LA PALLICE LA PALLICE LA PALLICE LA PALLICE LA PALLICE LA PALLICE
PASAJES PASAJES PASAJES PASAJES PASAJES PASAJES PASAJES PASAJES PASAJES
AVEIRO AVEIRO AVEIRO AVEIRO AVEIRO AVEIRO AVEIRO AVEIRO AVEIRO
GANDIA GANDIA GANDIA GANDIA GANDIA GANDIA GANDIA GANDIA GANDIA
SdraCell - SupplyChain
Wood supply Production Distribution
Sdra Cell Supply Chain
Wood
terminal
p
o
r
t
a
l
S
h
i
p
m
e
n
t

p
T
e
r
m
i
n
a
External
Procurement :
Harvesting Transport
Product ion:
Pulp production
Dist ribut ion:
Haulage of pulp
Sales:
Supplying the customer Harvesting, Transport Pulp production Haulage of pulp
Harvest calculat ion: (5yr)
- Forest policy implications
St rat egic planning: (5yr)
- Investments at mills - Time chartering of vessels - Geographic regions
Supplying the customer
p y p
- Domestic/Import
- Transport capacity
Wood supply balancing: (1yr)
g g p g
- Terminal structure - Segments
- Strategic customers
Budget ing/ Prognosis: (1yr) Budget ing/ Prognosis: (1yr)
- Volume Domestic/Import
- Harvest volume per Region
- Wood-exchange
Wood supply planning: (3m)
- Production capacity per product Customer demands per
product
- Volumesper product per mill
Transport volumes (purchase)
Product ion planning: (3m) Invent ory planning ( policies):
- Contracts regular customers
- Estimation other customers
O d l t
Wood supply planning: (3m)
- Requirement per assortment
distributed per Region
Product ion planning: (3m)
- Campaignsper mill
Invent ory planning (-policies):
- Vessel routes/time tables
- Orders regular customers
- Estimation other customers
- SMI*-forecasts medium
term
Cat chment areas: (1m)
- Region ->Mill per
assortment
- Back-haulage
- Chips-exchange
Change-overs: (1m)
- Fine tuning of change-overs
(day/time)
s.t. Customer orders, stocks
etc
Operat ive t ransport plan.:
(1m)
- Vessel routing
- Load-planning at mill
s.t. Sea/Train/Truck - volumes
- Call-offs regular customers
- Orders other customers
- SMI-forecasts short term
p g
Operat ive t ransport at ion
- Vehicle routing (Daily)
- Combination of other
transports
Operat ive t ransport at ion
- Vehicle routing (Daily)
- Combination of other
transports
Operat ive: (Daily)
- Order/delivery process
transports transports
Inventories / Lead times
30
60
>15% of volume => 320 000 tonnes
30
60
>15% of volume => 320 000 tonnes
150 million
Storage cost (20%)
30 million
PulpSMI: p
Supplier Managed Inventory
Sdra Cell responsibility
Customer responsibility
Security stock
(5-10 days)
Terminals
Sdra Cell Folla
Sdra Cell Tofte
Sdra Cell Mnsters
Sd C ll M
Sdra Cell Vr
G th
Sdra Cell Mrrum
Swinoujscie
Brake
Grangemouth
Terneuzen Chatham
Basel
Genova
La Pallice
Pasajes
Delivery alternatives
Sdra Cell Folla
Sdra Cell Tofte
Sdra Cell Mnsters
Sd C ll M
Sdra Cell Vr
Sdra Cell Mrrum
Swinoujscie Brake
Terneuzen Terneuzen
Basel
Distribution- Complexity
HALDEN
Tof t e
Distribution Complexity
Vr
Three vessels on long term contract
Additional vessels on spot market p
Train and truck transports
EMDEN
HULL HULL HULL HULL HULL HULL HULL HULL HULL
GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY GRIMSBY
STETTIN
KIEL
Several different products
Supply Demand
NORTHFLEET
LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT LOWESTOFT
BREMEN
WESEL
Suppy e d
Alternative
shipment ports
GHENT
TERNEUZEN
NORTHFLEET
CHATHAM
ANTWERPEN
WESEL
shipment ports
Alternative
terminals
Supplychaindesignat Supplychaindesign at
Sveaskogg
Case study - Sveaskog
Major Swedish forest
company(Sveaskog) with company(Sveaskog) with
16% of overall productive
forest area
Usingonetrainsystem,
Trtget
Studyto usea new system,
Bergslagspendeln, with a
b f i l number of potential
terminals
Classical transportation problem p p
i x
ijk
demand to point supply from flow =
k j assortment with point
Norra
Simple approach
Norra Norra
Simple approach
Sala
Heby Hallstavik
Sala
Heby Hallstavik
Sala
Heby Hallstavik
stra
Sala
stra
Sala
stra
Sala
Vstra Vsters Vstra Vsters Vstra Vsters
Norra
Backhaulage tour
Norra Norra
Backhaulage tour
Sala
Heby
Hallstavik
Sala
Heby
Hallstavik
Sala
Heby
Hallstavik
stra
Vst a V te
stra
Vst a V te
stra
Vst a V te Vstra Vsters Vstra Vsters Vstra Vsters
Catchment areas - comparison Catc e t aeas co pa so
Casestudy Case study
1,500 supply points, 220 industrial demands,
5trainroutes 10potential terminals 5 train routes, 10 potential terminals,
12 products, 8 product groups, five scenarios.
3,000 constraints, 30 million variables
Solutiontime1minute several hours Solution time 1 minute several hours
Truck transports reduced by 35% and overall
energy 20%
Tactical planning integratedproduction Tactical planning integratedproduction
and transportationplanningat Sdra Cell
Supply chain
Wood supply Production Distribution
Suppyc
Wood
terminal
Ship-
ment
Term-
inals
port
External
Supplychainstructure Supply chain structure
Forestry
Districts
M
i
l
l
s
Domestic
Customers
Sawmills
Swedish
Harbours
Districts
a

P
u
l
p

M
Customers
S

d
r
a
Import
International
Customers
Production Plans
S90Z S90TZ S85Z S85SZ S70Z SBZ S90Z
Sdra Cell, Supply Chain - conditions
Daily variation due to
campaign production
, ppy
Stock
at mill
Usage
in mill
Deliveries
to mill
campaign production
80 0
90,0
8 0
9,0
(0-90 000) (0-8 000) (0-9 000)
60,0
70,0
80,0
6,0
7,0
8,0
30 0
40,0
50,0
3 0
4,0
5,0
10,0
20,0
30,0
1,0
2,0
3,0
0,0 0,0
January 1st to June 30th 2000
Productionplans Production plans
Comparisonwithmanual plans(campaignchanges Comparisonwith manual plans (campaignchanges
35 million SEK, total 120 110 million SEK)
Strategicimplicationsregardingcampaignscheduling Strategicimplicationsregardingcampaignscheduling
VARO VAS90Z 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3
VARO VAS85RZ 3 3 3
VARO VAS85TZ 2 2 2 3
VARO VAS80TZ 3 3 VARO VAS80TZ 3 3
MONSTERAS MONSBZ 2 2 2 2 2 2 2 3 3 3
MONSTERAS MONS90Z 3 3 3 3
MONSTERAS MONS85Z 2 2 2 2 2 2
MONSTERAS MONS85S 2 3 MONSTERAS MONS85S 2 3
MONSTERAS MONS90S 2 3 3
MONSTERAS MSTOP
MORRUM MORSBZ 3 3 3 3 3
MORRUM MORS90TD 2 2 2 2 2 2 3 MORRUM MORS90TD 2 2 2 2 2 2 3
MORRUM MORS70TZ 2 2 2 2 2 2 2 2 2 3 3 3 3
MORRUM MORS90RD
1 31 61
Collaborationintransportation Collaboration in transportation
Casestudy Case study
St d f d t i 2004( thl l ) Studyfrom data in 2004 (monthlyvolume)
Analysisdoneby Skogforsk
(Th F R hI i f S d ) (The ForestryResearch Instituteof Sweden)
8 participatingcompaniesin Sweden
898 supplypoints
101 demandpoints 0 de dpo s
39 assortments, 12 assortment groups
Savings: Savings:
Approximately8% by co-operation
Total of 14%ascomparedtoactual transportation Total of 14% as comparedto actual transportation
Environment CO2: 5,330 tons to 4,350 tons.
Company Volume
Proportion
(%)
Company 1
77 361 8 76
Company 1
77,361 8,76
Company 2
301,660 34,16
Company 3
94,769 10,73
p y
, ,
Company 4
44,509 5,04
Company 5
232,103 26,29
Company 6
89,318 10,12
Company 7
36,786 4,17
Company 8
6,446 0,73
Total
882,952
opt1: direct flows (individual)
opt2: backhaul flows (individual)
opt3: direct flows (collaboration)
opt4: backhaul flows (collaboration)
Company Real opt 1 opt 2 opt 3 opt 4
Company 1
3,894 3,778 3,640
p y
3,89 3, 8 3,6 0
Company 2
15,757 14,859 14,684
Company 3
4 828 4 742 4 703
Company 3
4,828 4,742 4,703
Company 4
2,103 2,067 2,043
Company 5
10 704 10 340 10 153
Company 5
10,704 10,340 10,153
Company 6
5,084 4,959 4,826
Company 7
1 934 1 884 1 877
Company 7
1,934 1,884 1,877
Company 8
0,333 0,333 0,332
All All
39,253 38,315
Total
44,637 42,963 42,257 39,253 38,315
Saving (%)
0,00 3,75 5,33 12,06 14,16
Cost allocationbasedonvolume Cost allocation based on volume
Company Individual Volume %
Company 1 3,778 3,439
9,0
Company 2 14,859 13,411
9,7
Company 3 4 742 4 213
11 2
Company 3 4,742 4,213
11,2
Company 4 2,067 1,979
4,3
Company 5 10,340 10,318
0,2
Company 6 4,959 3,971
19,9
p y
,
Company 7 1,884 1,635
13,2
Company 8 0 333 0 287
14 0
Company 8 0,333 0,287
14,0
Sum 42,963 39,253
Supplyanddemand Supply and demand
Game theory approach Basics y pp
players) (or ts participan of subset a : coalition N S
for ation transport for the cost :
ts participan all : coalition grand
S c(S)
N S =
p S (S)

{ }
: allocation Efficient c(N) y
N j
j
=

{ }
: Core
) ( : rational Individual
N S c(S) y
j c y
j
j

y) (efficienc
, : Core
c(N) y
N S c(S) y
S j
j
=

y) (efficienc c(N) y
N j
j
=

VolumevsShapleyvalue Volume vs Shapley value

Company Volume % Shapley %
Company 1 3,439
9,0
3,586
5,1
Company 2 13,411
9,7
13,528
9,0 , ,
Company 3 4,213
11,2
4,102
13,5
Company 4 1,979
4,3
1,889
8,6
p y ,
4,3
,
8,6
Company 5 10,318
0,2
9,747
5,7
Company 6 3 971
19 9
4 503
9 2
Company 6 3,971
19,9
4,503
9,2
Company 7 1,635
13,2
1,587
15,8
Company 8 0 287
14 0
0 310
6 9
Company 8 0,287
14,0
0,310
6,9
Sum 39,253 39,253
Stable No Yes Stable No Yes
Equal Profit Method(EPM) Equal Profit Method(EPM)
Company Volume Shapley Shadow Nucleo. EPM
Company 1 9 0 5 1 4 1 3 4 6 7 Company 1 9,0 5,1 4,1 3,4 6,7
Company 2 9,7 9,0 12,7 11,1 8,8
Company 3 11,2 13,5 14,2 14,0 8,8
Company 4 4,3 8,6 13,3 6,4 8,8
Company 5 0,2 5,7 -1,8 4,8 8,8
Company 6 19,9 9,2 11,7 8,3 8,8
Company 7 13,2 15,8 15,6 11,5 8,8
Company 8 14,0 6,9 9,1 4,6 8,8 Company 8 14,0 6,9 9,1 4,6 8,8
Operational planning routing Operational planning routing
Standard vehicle routing problem gp
forest vehicle routing problem gp
542,000 km roads in Sweden
-----------------------------------
102,000 government
56,000 local communities
384000private 384,000 private
Route selection with road database
Length Length
Road class
Speed limit
S f Surface
Roadwidth Road width
Owner
Gantt schedulefor aday Gantt schedule for a day
Industrial demand
Accumulated demand
max
min
max
i i d
min
Time period
Day 1
Day 2 Day 3 Day 4
Day 5
Gantt schedulefor threedays Gantt schedule for three days
Two phasemethod Two phase method
Idea:
Use an efficient tabu search algorithm to form routes
Phase1: Phase 1:
Construct transport nodes mainly by solving a
destinationproblem(LP) andformloadstakenfrom destination problem (LP) and form loads taken from
supply point(s) to demand point
Phase2: Phase 2:
Use an extended and modified tabu search to
construct routeswhereeg timewindowsandexcess construct routes where e.g. time windows and excess
supply is taken care of
Industries
Harvest areas
Home bases and change-over points g p
Real timeplanning Real time planning
process control at Billerud
Plug flow D(EOP)DP sequence g
Kappa number
Brightness
Kappa number
Brightness
Brightness
Residual
Brightness
Residual
D1a
EOP
D0
D1b
D2
EOP
Hydrogen peroxide
Oxygen
Chl i di id
Chlorine dioxide
(Chlorine dioxide)
Hydrogen peroxide
Time: 0 h
Time: 2.93 h
Time: 5.61 h
Brightness: 87.26
Time: 8.64 h
Chlorine dioxide
Brightness: 39.18
Brightness: 74.75
Brightness: 87.84
Brightness: 90.61
State vector, control, and output , , p

Stage D0 Stage EOP Stage D1 Stage D2
D1a
x

2
z
1
z
x D1b
D2
3
x

3
y
4
y
2
y
1
y

3
z
4
z
EOP D0

4
x
1
x

2
x D1b

3
x
: Variables
i
i
i
i
i
Stage after output
charges) (chemical Stage in control
Stage before vector State
:
=
=
=
y
x
z
Variables
i
i
Stage after output = y
P l Parameter values
) , , (
s Definition
=
i i i i i
w x z F y
Tower
Stage i
i
z
i
y
s polynomial e th
for Parameters =
i
w
i
x
solve we problem on optimizati square least a
) , , ( s.t.
) ) , , ( ( min ] [LSOP
2
i
i i i i i
i i i i i
b w x z A
y w x z F

Unknown -
data Historical - , ,
i
i i i
w
x z y
Master Problem
Linking the output with the
approximate functions
Master Problem
Connect brightnessbetween
Cost of chemicals
min [MP]
4
1 =

i
i
T
i
x c
Connect brightness between
stages
4 , 3 , 2 , 1 ) (
1,2,3,4 ) , , ( s.t.
1
= =
= =
+
i
i
i i i
i i i i i
y z G
w x z F y
Relaxed and
1,2,3,4
1,2,3,4
max min
max min
=
=
i
i
i i i
i i i
x x x
y y y
penalized in the
objective
i i i
Stage in chemicals for costs -
where
i
i c
Upper and lower limits of the
output and control
number kappa
e ly with th equivalent and stages, e between th
brightness e connect th to used functions - ) (
] [LSOP of solution the as fix -
g
i
i i
i
i
z G
w
number kappa
Support tool - informationflow Support tool information flow
Support tool
O ti l t l
Operators
Optimization
Data storage
Plug flow
Optimal control
values
Optimization
The bleaching process Real control
l
Process
D1a
EOP
values
data
D0
D1b
D2
Brightnessafter Tower D1b Brightness after Tower D1b
90
88
84
86
Estimated Real
80
82
78
16.jan 16.jan 17.jan 17.jan 18.jan 18.jan 19.jan 19.jan 20.jan
Cost of manual run
Kr/(ton o kappa)
13
14
15
Real cost
10
11
12
8
9
Opt cost
Period of three weeks, > 9 % difference
Concludingremarks Concludingremarks
Therearemanyplanningproblemsthat canbe Thereare manyplanningproblems that canbe
coordinatedand/or optimizedin the pulpand paper
supplychainandwhichprovidelargesavings supplychainand whichprovide largesavings.
The modelsare a combination of nonlinear/ integer
dl l and largescale.
Thereare manyopenand challengingproblems in the
pulpand paper supplychain, e.g. robustness,
uncertainty, collaboration