Forest management: A multicommodity flow formulation and sensitivity analysis

Forest management: A multicommodity flow formulation and sensitivity analysis

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Article ID: iaor1997153
Country: United States
Volume: 41
Issue: 10
Start Page Number: 1654
End Page Number: 1668
Publication Date: Oct 1995
Journal: Management Science
Authors: ,
Keywords: networks: flow, programming: parametric
Abstract:

The authors formulate the Forest Management Problem as a Multicommodity Network Flow Problem with a convex cost function. They then show how to transfer the problem to an equivalent Single-Commodity Network Flow formulation in order to address several sensitivity analysis questions using results by Granot and Veinott. The answers can subsequently be used to help forest managers respond to changes in the environment such as fires or changes in market prices, without any additional computation. Furthermore, the characterization of the response the authors provide requires no prior knowledge of optimal management policies.

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