Supply chain optimisation in the paper industry

Supply chain optimisation in the paper industry

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Article ID: iaor2003111
Country: Netherlands
Volume: 108
Issue: 1
Start Page Number: 225
End Page Number: 237
Publication Date: Nov 2001
Journal: Annals of Operations Research
Authors: ,
Keywords: paper industry, supply chain
Abstract:

We describe the formulation and development of a supply-chain optimisation model for Fletcher Challenge Paper Australasia (FCPA). This model, known as Paper Industry Value Optimisation Tool (PIVOT), is a large mixed integer program that finds an optimal allocation of supplier to mill, product to paper machine, and paper machine to customer, while at the same time modelling many of the supply chain details and nuances which are peculiar to FCPA. PIVOT has assisted FCPA in solving a number of strategic and tactical decision problems, and provided significant economic benefits for the company.

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