A strategic planning model for maximizing value creation in pulp and paper mills

Authors: Weigel, Glenn
Advisor: D'Amours, Sophie; Martel, Alain
Abstract: The Canadian pulp and paper industry is facing several important challenges. One of these challenges is to find new ways of improving value creation throughout the value chain while manufacturing high quality products from raw materials with inherently variable properties. This challenge can be addressed using two parallel strategies. The first of these involves managing the flow of materials through the value chain in such a way that fibre grades are directed to the processes and end-products to which they are best suited. The second involves tailoring the end-product range to take maximum advantage of existing market conditions and fibre resource properties. Operating simultaneously, these strategies ensure the profits generated from the available fibre resources are maximized. This thesis presents a strategic planning model which provides a mathematical framework for developing these strategies. The model uses customer demand and market value to determine how strongly each end-product is pulled through the value chain, and raw material availability and cost, together with established relationships between fibre properties and pulp and paper properties, to determine how various fibre grades are utilized. The model itself is a large mixed-integer program which was implemented using ILOG OPL Studio 3.7 with ILOG CPLEX 9.0 as solver. A test case was developed based on a realistic integrated pulp and paper mill, and the model was validated using a series of example scenarios. The results show that the model is valid, that it can be used to identify strategies for significantly improving value creation, and that it can be solved quickly enough to allow its expansion to a production network environment.
Document Type: Mémoire de maîtrise
Issue Date: 2005
Open Access Date: 12 April 2018
Permalink: http://hdl.handle.net/20.500.11794/18846
Grantor: Université Laval
Collection:Thèses et mémoires

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