Supporting wood supply chain decisions with simulation for a mill in northwestern British Columbia (Canada)

Seasonal restrictions on harvesting and transportation operations have traditionally forced mill managers to maintain high levels of inventory in the log-yard to ensure continuous operation of the mill. We propose two technologies which may prolong the operating season, potentially reducing inventory handling and holding costs: Central tire inflation (CTIS) and cable-based harvest systems. To evaluate the effect of the CTIS-equipped trucks and cable-based harvesting on the wood supply chain, a discrete event simulation model was developed and was validated. The simulation model estimates the total cost of the system with each technology included, both separately and in combination. It was found that there was a small significant saving in inventory costs for scenarios that used CTIS trucks, but no significant savings in overall cost was observed for any of the technologies.