A Modeling Framework for Maximizing Value Creation in Pulp and Paper Mills

The research leading to the modeling framework presented in this paper was motivated by the need to provide Canadian pulp and paper producers with a means of maximizing the value created from available fibre supplies. The proposed approach involves finding optimal strategies for partitioning fibre supplies into grades, allocating fibre grades to process streams, selecting appropriate production technologies and capacities, and establishing end‐product range compositions and production volumes. These strategies are elaborated with a mixed‐integer programming model which can be solved using commercial optimization software. Three test case scenarios are used to validate the model and illustrate how it can be applied to strategic and tactical decision making. A variant of this model has also been applied to an industrial planning problem.