Internal supply chain management in the Chilean sawmill industry

Internal supply chain management in the Chilean sawmill industry

0.00 Avg rating0 Votes
Article ID: iaor20081770
Country: United Kingdom
Volume: 27
Issue: 5
Start Page Number: 524
End Page Number: 541
Publication Date: Jan 2007
Journal: International Journal of Operations & Production Management
Authors: ,
Keywords: production, forestry, programming: linear
Abstract:

Purpose – The existing business paradigm in the sawmill industry is that improvements are achieved by enhancements at each individual sawmilling plant. The authors investigate a collaborative approach, and propose a model for optimizing production and inventory planning decisions within a system of plants. Design/methodology/approach – The methodology models the sawmill production process in terms of two transformation stages and two inventory stages. The authors then extend the model to account for supply chain decisions consisting of timber transfers among plants. They apply the model at 11 Chilean sawmills to evaluate whether they can benefit from operating in a more integrated manner. Findings – The authors find an opportunity to increase profits by more than 15 percent through a higher utilization of the capacity and a better assignment of production orders.

Reviews

Required fields are marked *. Your email address will not be published.