Article

A Description of Supply Chain Planning Problems in the Paper Industry with Literature Review

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

Abstract

The paper industry supply chain is highly complex and consists of many processes and planning tasks. It starts with the collection of raw wood and ends up in different paper products from paperboard to high class art papers. Managing the supply chain is difficult and the permanently changing business environment constantly brings new challenges. This paper starts with outlining the challenges in the supply chain management of today’s paper industry. After that we evaluate the state of research to determine planning problems covered by the literature. The purpose is to catch up time-wise on the previous overview from 2009 and also to update the planning problems. This overview paper summarizes comprehensively the paper industry as of today. It provides a reference work for researchers and other interested parties, and uncovers areas for future research.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... Interest in researching reverse supply chains (RSCs) and reverse logistic (RLs) is growing, as indicated by large quantities of publications in the field. The literature especially review papers have split the field into two themes: specific aspects of RLs, such as modeling [1], RL planning [2], drivers [3], performance measures [4], and structure [5], and a general overview of RL [6,7]. Figure 1 shows the basic concept of RL. ...
... Moreover, there are many review papers that summarize the technical articles and identify and classify the research according to different criteria (Table 1). [9] 2020 CLSC/RL Classification in forward and backward supply chain 2002-2017 204 F. Jaehn and R. Juopperi [2] 2019 RL Identifying RL planning in paper industry 2009 L. L. Tombido et al. [4] 2018 CLSC/RL Performance measures and technological use 2000- 2018 134 M. T. Islam and N. Huda [10] 2018 CLSC/RL Classification of four research types in E-waste product (designing and planning of reverse distribution, decision making and performance evaluation, conceptual framework, and qualitative studies) 1999-2017 157 S. C. Thaba [3] 2017 RL Identifying drivers M. G. Moniveena et al. [11] 2017 RL Identify the regulation of reverse logistic for pharmaceutical industry S. Guo et al. [5] 2017 RL Classification of supply chain structure (contract, link, and leadership) 2006-2016 62 K. Govindan and H. Soleimani [12] 2017 [14] 2015 RL Identifying RL characteristic, modeling, and stakeholder RL 1998-2012 ...
... The authors make an effort to answer the following research questions: (1) What are various aspects in RL research? (2) In which directions RL research is heading towards?, and (3) What are different performance measures, solution methods, and constraints in RL? The later sections of this paper are structured as follows. ...
Article
Full-text available
Sustainable development is now the focus of researchers and organizations worldwide. Several concepts, such as reverse logistics (RLs) and closed-loop supply chains, have been introduced to encourage sustainability in supply chains. RLs refers to the set of activities needed by consumers to collect the product used for reuse, repair, remanufacturing, recycling, or disposal of the used product. There are various processes involved in RL, and one of them is collection systems. Collection refers to a company obtaining custody of specific items. We review the literature on RLs collection systems. A bibliometric analysis was conducted to provide better insight into the field and establish any trends. Firstly, we present the classification methods used in the field, based on available review papers. Secondly, we evaluate literature from several fields that are related to either the problem setting or the technical features. Different perspectives are presented and classified. This method facilitates the identification of manuscripts related to the reader’s specific interests. Throughout the literature review, trends in measuring the performance of collection systems are identified, and directions for future research are identified and presented.
... However, the focus is on supply chains in a general way and some processes that are part of specific systems were not considered, since the reverse process conditions and steps may vary according to the type of material studied [61]. Although [55] has presented a review on problems in paper supply chain management, reverse supply chains were not discussed greatly. ...
... and to develop solution approaches [54] Environmental aspects and tools for product design, characteristics of reverse and closedloop supply chains, such as network design and optimization of transportation, remanufacturing and disassembly To include uncertainty and environmental parameters; and to develop solution approaches [55] Supply chain management problems in paper industry. Production, distribution, inventory, analysis of recycled fibers, processes optimization and uncertainty Quality and availability of recycled fibers, process planning considering demand uncertainty, optimization models embedding energy price variations [56] Optimization models applied to solid waste management systems. ...
Article
A discussion is currently under way in the literature on the sustainable benefits of recycling material, particularly paper, which has high global consumption and polluting capacity. Optimized planning of waste paper recycling networks stimulates sustainable processing efficiency, motivating the investigation of quantitative methods to guide decision-making. The objective of this article is to review papers that present quantitative models for planning waste paper recycling networks considering optimization of the echelons of this process, to analyze the evolution of research, find research opportunities and contribute to future research. The article presents an analysis of five categories of the selected studies: I—evolution of publications; II—echelons considered in different waste paper recycling systems; III—the sustainability pillars considered in the objectives of the formulated model; IV—formulations and techniques used; and V—uncertainty analysis. The proposal for waste paper recycling networks involves summary of the echelons considered in selected articles, to help future analysis. Research suggestions involving sustainability objectives, especially considering social issues, using different solution techniques and considering uncertainty were identified. This study, by reviewing the articles and identifying possibilities for future research, contributes to the development of research using quantitative methods for the efficient management of waste paper recycling networks or similar arrangements.
... In their otherwise comprehensive look at scheduling issues in the paper industry of 2001, [4] do not discuss our problem at all. Similarly, it fails to appear in the 2009 survey [5] and follow-on 2019 survey [6] of supply chain problems in the paper industry. ...
Preprint
Full-text available
The production of corrugated paper boxes accounts for roughly one third of the world's total paper production and, as a result of both COVID-19 and the rise of e-commerce, is a growing market. We provide a fresh approach to determining near-optimal stock policies for integrated paper companies. The new approach shows that existing policies can be improved by a significant margin. In a case study we saw a reduction in total waste by 9%, with a simultaneous decrease in logistics costs.
Article
Full-text available
A key challenge for the waste management sector is to maximise resource efficiency whilst simultaneously reducing its greenhouse gas (GHG) emissions. For stakeholders to better understand the GHG impacts of their waste management activities and identify emissions reduction opportunities, they need to be able to quantify the GHG impacts of material recycling. Whilst previous studies have been under-taken to develop GHG emission factors (EF) for materials recycling, they are generally insufficient to support decision-making due to a lack of transparency or comprehensiveness in the range of materials considered. In this study, we present for the first time a comprehensive, scientifically robust, fully transparent , and clearly documented series of GHG EFs for the recycling of a wide range of source-segregated materials. EFs were derived from a series of partial life cycle assessments (LCA) performed as far as possible in accordance with the ISO 14040 standard. With the exceptions of soil, plasterboard, and paint, the recycling of source-segregated materials resulted in net GHG savings. The majority of calculated GHG EFs were within the range of data presented in the literature. The quality of secondary data used was assessed, with the results highlighting the dearth of high quality life cycle inventory (LCI) data on material reprocessing and primary production currently available. Overall, the results highlight the important contribution that effective source-segregated materials recycling can have in reducing the GHG impacts of waste management.
Article
Full-text available
This study examines the strategic investment choices made in pulp and paper industry (PPI) within the last two decades. We first describe investments, initiated projects, and closures of pulp and paper mills and profitability of the 22 largest pulp and paper companies in North America, Western Europe and Japan. We then examine the development and impact of R&D investments by comparing the timing of R&D investments with changes in profitability. The results indicate that the relationship between R&D and profitability is company specific. Our findings indicate further that the logic of R&D investment differs across firms; in some companies, changes in profits cause changes in the R&D investment level, whereas in others the opposite holds. It also seems that the sample companies have not actively sought new market opportunities through innovation activity, but rather by geographical re-location of production. © 2015 Wood Technology Society of the Institute of Materials, Minerals and Mining.
Article
Full-text available
Production planning and scheduling in the process industry in general and in the pulp and paper (P&P) sector in particular can be very challenging. Most practitioners, however, address those activities relying only on spreadsheets, which is time-consuming and sub-optimal. The literature has reported some decision support systems (DSSs) that are far from the state-of-the-art with regard to optimization models and methods, and several research works that do not address industrial issues. We contribute to reduce that gap by developing and describing a DSS that resulted from several iterations with a P&P company and from a thorough review of the literature on process systems engineering. The DSS incorporates relevant industrial features (which motivated the development of a specific model), exhibits important technical details (such as the connection to existing systems and user-friendly interfaces) and shows how optimization can be integrated in real world applications, enhanced by key pre- and post-optimization procedures.
Article
Full-text available
The international recovered paper trade serves two important functions: increasing raw material availability in the paper and board industry and providing economic incentives to recycle. The purpose of this paper is to shed further light on emerging patterns in this trade by empirically analysing the changes in the bilateral trade flows of recycled paper between 1992 and 2008. According to our estimations, two important changes occurred in the 1990s and 2000s. First, the growing importance of developing economies in global recycled paper trade plays a significant role in import demand as a determinant of trade flows. Second, the changes in global trade patterns necessitate investigating the transportation cost measures used in applied research.
Article
Full-text available
Based on environmental, legal, social, and economic factors, reverse logistics and closed-loop supply chain issues have attracted attention among both academia and practitioners. This attention is evident by the vast number of publications in scientific journals which have been published in recent years. Hence, a comprehensive literature review of recent and state-of-the-art papers is vital to draw a framework of the past, and to shed light on future directions. The aim of this paper is to review recently published papers in reverse logistic and closed-loop supply chain in scientific journals. A total of 382 papers published between January 2007 and March 2013 are selected and reviewed. The papers are then analyzed and categorized to construct a useful foundation of past research. Finally, gaps in the literature are identified to clarify and to suggest future research opportunities.
Article
Full-text available
Many engineers see plant location selection only as an interesting task and a minor part of process and plant engineering. At the same time plant location selection is an important part of the corporate level strategic management and decision making. This paper discusses the types of interactions between plant location selection and strategic long term value creation at the corporate level. The research approach used in this case study is a combination of the classic value chain model and the core elements of plant location selection methods. The most important findings are that the plant location selection and the chosen technology are the core internal elements at the corporate level for long term value creation.
Article
Full-text available
Based on a study of policy-induced changes in the Swedish pulp and paper industry, this paper follows a process of socio-technical regime destabilisation. Results from the study show that in industries where established firms have significant power, processes of endogenous renewal are more likely to destabilise established regimes than processes based on niche solutions. Further, the study shows how policy measures aimed to destabilise the current regime may result in different responses, owing to the different capabilities of individual firms. The analysis suggests that heterogeneous capabilities within established industries provide possibilities for policy makers to initiate change.
Chapter
Full-text available
Markets and Market Forces for Pulp and Paper Products Lauri Hetemäki, Riitta Hänninen, and Alexander Moiseyev Content 5.1 Background and the State of the Sector.............................................................................99 5.1.1 Background................................................................................................................99 5.1.2 Significance, Structure, and Outlook of the Global Paper and Paperboard Sector................................................................................ 100 5.1.3 Regional Pulp and Paper Markets and Trade..................................................... 103 5.2 Impact of Digital Media in the Graphics Paper Sector.................................................. 104 5.2.1 Background.............................................................................................................. 104 5.2.2 Drivers of Market Changes................................................................................... 105 5.2.3 Declining Price Trend............................................................................................ 108 5.3 Packaging Sector Increases Paperboard Consumption................................................ 109 5.3.1 Overview of Packaging and Paperboard Products............................................ 109 5.3.2 Regional Developments in Paperboard Markets............................................... 110 5.3.3 Changes in Paperboard Prices.............................................................................. 111 5.3.4 Drivers of Paperboard and Packaging Markets................................................. 111 5.4 Implications of Paper Markets on the Wood Fiber Demand........................................ 115 5.5 Pulp and Paper Industry Is Still Consolidating and Globalizing................................ 119 5.6 New Products...................................................................................................................... 121 5.6.1 Background: Saturation of Old Products, Birth of New Products................... 121 5.6.2 Toward a Forest-Based Biorefinery......................................................................122 5.7 Conclusions..........................................................................................................................123 References......................................................................................................................................125
Article
Full-text available
The “trim loss problem” (TLP) is one of the most challenging problems in context of optimization research. It aims at determining the optimal cutting pattern of a number of items of various lengths from a stock of standard size material to meet the customers’ demands that the wastage due to trim loss is minimized. The resulting mathematical model is highly nonconvex in nature accompanied with several constraints with added restrictions of binary variables. This prevents the application of conventional optimization methods. In this paper we use synergetic differential evolution (SDE) for the solution of this type of problems. Four hypothetical but relevant cases of trim loss problem arising in paper industry are taken for the experiment. The experimental results compared with those of the other techniques show the competence of the SDE to solve the problem.
Article
Full-text available
Mathematical formulations for production planning are increasing complexity, in order to improve their realism. In short-term planning, the desirable level of detail is particularly high. Exact solvers fail to generate good quality solutions for those complex models on medium- and large-sized instances within feasible time. Motivated by a real-world case study in the pulp and paper industry, this paper provides an efficient solution method to tackle the short-term production planning and scheduling in an integrated mill. Decisions on the paper machine setup pattern and on the production rate of the pulp digester (which is constrained to a maximum variation) complicate the problem. The approach is built on top of a mixed integer programming (MIP) formulation derived from the multi-stage general lotsizing and scheduling problem. It combines a Variable Neighbourhood Search procedure which manages the setup-related variables, a specific heuristic to determine the digester's production speeds and an exact method to optimize the production and flow movement decisions. Different strategies are explored to speed-up the solution procedure and alternative variants of the algorithm are tested on instances based on real data from the case study. The algorithm is benchmarked against exact procedures.
Article
Barber Ellis Fine Papers (BEFP) is a Canadian distributor of about 10,000 SKUs to several thousand small or medium-sized firms in the printing and graphic arts industries. A considerable increase in sales is anticipated over the next few years, requiring BEFP to make some important policy decisions in inventory, warehousing and transportation. Two methodologies were employed in our analysis. First, a spreadsheet model was used to simulate several particular inventory/distribution alternatives, e.g. the present decentralized system and a system based on a national distribution centre. Secondly, linear programming was used to obtain the best system alternative, consistent with constraints on capacities, demands, etc. Details of the methods, the results and conclusions are given. Relative merits of simulation and optimization models for this type of inventory/distribution problem are noted, and suggestions are made for further research.
Article
Corner Polyhedra are a natural intermediate step between linear programming and integer programming. This paper first describes how the concept of Corner Polyhedra arose unexpectedly from a practical operations research problem, and then describes how it evolved to shed light on fundamental aspects of integer programming and to provide a great variety of cutting planes for integer programming.
Chapter
Nowadays, increasing global business operations call for internationally accepted business conduct and socially responsible management. Since there is no over-the-boundary global legislation, the institutionalization of various CR programs and initiatives is challenging for many globally operating companies. This is true to a few Finnish, globally operating companies, too. Many businesses and policy researchers have been clarifying the global business environment by normative means, such as the development of various corporate responsibility (CR) management programs or initiatives. This paper looks at some examples of operations of Finland-based companies in six different operation areas to determine the adequacy of national and international CR initiatives in various operation environments and to map out the institutionalization process behind the CR initiatives. The cases were analyzed using the normative ISO 26000 CR guideline interpreted into the Finnish context by the Finnish Corporate Social Responsibility Network (FIBS). The analysis was expanded beyond the Finnish home market, as the major responsibility debate has concentrated on the international operations of large Finnish companies.
Article
Electricity generated from forest-based biomass is an attractive source of renewable energy. However, the cost of generating heat and/or electricity from it is relatively high due to the low energy density of wood, high moisture content and variations in its quality and availability. Models have been developed to optimize the supply chain and reduce the cost per kilowatt hour generated. This paper focuses on incorporating uncertainty in the supply chain of such a model. The model considers the tactical supply chain planning of a power plant over a one-year time horizon with monthly time steps. Uncertain parameters which impact the net profit of the power plant include 'biomass quality,' namely moisture content and higher heating value, and 'monthly available biomass' from different suppliers. Robust optimization is used to model uncertainty in the quality of biomass. Then a hybrid, multi-stage, 'stochastic programming-robust optimization' model is presented in order to simultaneously include uncertainty in biomass quality and biomass availability. It is demonstrated that the hybrid model takes advantage of both modelling approaches to balance the profit estimates and the tractability to various circumstances. The model provides solution considering all instances of the uncertain parameters within the defined sets and scenario tree. The results revealed a major trade-off between profit and range of biomass quality. Profit decreased by up to 23% when there was ±13% variation in moisture content and ±5% change in higher heating value. The model achieved a biomass purchase cost that was lower than the current commercial costs at the power plant. Implementing the model could prevent production curtailment and undesirable fluctuation in storage levels which occurred in the past due to variations in biomass availability and quality.
Article
Bio-oils were produced through intermediate (IP) and fast pyrolysis (FP), using Eucalyptus sp. (hardwood) and Picea abies (softwood), wood wastes produced in large scale in Pulp and Paper industries. Characterization of these bio-oils was made using GC/qMS and GC×GC/TOFMS. The use of GC×GC provided a broader characterization of bio-oils and it allowed tracing potential markers of hardwood bio-oil, such as dimethoxy-phenols, which might co-elute in 1D-GC. Catalytic FP increased the percentage of aromatic hydrocarbons in P. abies bio-oil, indicating its potential for fuel production. However, the presence of polyaromatic hydrocarbons (PAH) draws attention to the need of a proper management of pyrolysis process in order to avoid the production of toxic compounds and also to the importance of GC×GC/TOFMS use to avoid co-elutions and consequent inaccuracies related to identification and quantification associated with GC/qMS. Ketones and phenols were the major bio-oil compounds and they might be applied to polymer production.
Article
The European Union has set a milestone for cutting its carbon emissions by 2030 to levels 40% below the levels of 1990 through domestic reductions, improved energy efficiency and the greater use of renewable energy sources. In parallel, the key challenge of the pulp and paper industry (PPI) is how to achieve a transformation towards a bioeconomy, as well as to realize the necessary new green innovations. Climate change, material resource scarcity and ecosystem decline are among the ten major sustainability megaforces identified by KPMG (2012), globally influencing business environments. However, the relative importance of these megaforces in the context of pulp and paper sector transformation is yet unknown. We therefore investigate the significance of these megaforces and their relation to the drivers of sustainability-related investments in the European pulp and paper sector, and identify threats and opportunities that these business environmental changes may bring about. Our results are based upon a three-round dissensus-based Delphi approach carried out with a sample of 30 high-level European PPI experts collected in 2014. The panelists identified a greater demand for energy, volatility in the fossil fuel markets and increasing material resource scarcity as the most significant sustainability megaforces shaping European PPI over the next 15 years. However, all the megaforces – except for global ecosystem decline and water scarcity – were perceived more as opportunities rather than threats to European PPI business, indicating that designed energy and environmental policies have the potential to advance a paradigm change towards a bioeconomy rather than curbing the future of the European PPI.
Article
Wooden biomass is the main source for energy based on biomass in Austria. Only a part of the wooden biomass for energy directly originates in forests. Other major sources include post-consumer wood and by-products of the Austrian forest-based industries. Consumption of wooden biomass has been growing much more than domestic production, forest-based industries are building up capacities in neighbouring countries, leaving less raw materials for exports to Austria than in the decades before. The authors have assessed the possible effects of a wood raw material shortage with a System-Dynamics simulation model of the Austrian forest-based sector (FOHOW). The model covers the interactions between the general economy and the forest-based sector, including wood-based energy. The simulation period ranged from 2006 to 2025. Beside a business as usual scenario, scenarios with a sawlog import reduction, a sawmill capacity reduction as well as a paper and panel capacity reduction were simulated. Probably the most notable result of the analysis is the strong impact of the sawmill industry on the fuelwood prices and availability. Despite increased fuelwood supply from forests, reduction of sawmill capacity will lead to the inability of fully meeting renewable energy policy objectives due to a shortage of sawmill residues. With exemption of the panel & paper capacity reduction scenario all other scenarios project a slight reduction of growing stock until 2025. But after decades of harvest below the increment such a development is not per se unsustainable. It can be expected that a shift in the Austrian forests towards younger stands will slightly increase the average increment.
Article
China's paper production accounted for nearly a quarter of the world's total paper production in 2010. In this study, 23 energy saving technologies applicable to the pulping and papermaking process in China are identified and analyzed. The conservation supply curve (CSC) method is employed to assess the technical and economic aspects of energy conservation. The fuel CSC for Chinese pulp and paper industry shows the cost-effective and technical fuel conservation potential is 180 PJ and 254 PJ, accounting for 27% and 38% of total fuel used in 2010, respectively. The CO2 mitigation potential related to the cost-effective fuel efficiency is 17 Mt CO2 and the technical potential is 24 Mt CO2. The electricity CSC shows the technical electricity conservation potential is 2316 GWh, representing 4% of total electricity consumption. All of the electricity efficiency measures are shown to be cost-effective in this study. The CO2 mitigation resulted from electricity efficiency is around 2 Mt CO2. In addition, sensitivity analyses for the parameters of penetration rate, discount rate, and energy price are conducted to assess their influence on the final results.
Article
A simple framework to estimate the potential of solar industrial process heating (SIPH) and corresponding CO2 emissions mitigation in paper industry in India is presented. Geographical locations with clusters of paper mills have been identified and the annual process heating requirement for paper production (based on raw material use) at each cluster has been estimated. The total process heating potential for the paper industry in India has been estimated at 25.2 PJ/annum. Using the estimated performance of a commercially available parabolic trough based SIPH system with collector area requirement of 1.11 million m2 annual solar fraction in the range of 0.25 - 0.30 have been estimated. Annual energy delivery of SIPH systems estimated at 4.34 PJ per annum. Finally at 8 main locations with clusters of paper mills in India considered in this study, adoption of SIPH without storage is expected to mitigate 0.34 million tonnes of CO2 emissions annually.
Article
Purpose – European paper industry has been struggling with margins and profitability for more than decade time period. At typical in markets of west, paper product demand is at long-term decline, mostly driven by continuously increasing internet use. However, in emerging markets demand still exists, and in Europe numerous small markets in east have even some growth available. The paper aims to discuss these issues. Design/methodology/approach – The authors analyse in this research work with longitudinal data (period of 2002-2009) from one large Finnish paper mill and data envelopment analysis (DEA) approach, how distribution efficiency to selected eight East European markets has evolved. Findings – In general distribution efficiency has improved, but this has taken place in step-wise manner rather than being linear year-to-year development (year 2006 found to be the threshold). Reason is mostly in better management of transportation costs, and in particular lower monthly deviation of these costs. It is surprising that case paper mill has been able to manage transportation costs in rapidly increasing energy cost environment so efficiently. Maybe European Union enlargement of 2004 and 2007 has had its effects on distribution efficiency. Research limitations/implications – The research is limited to the deliveries of one paper mill located in Finland. Also East European markets in the early periods of this study were emerging papers markets, and distribution practices were clearly evolving. Practical implications – Based on the study East European paper market distribution should give more attention on transportation cost control, and trying to find solutions to minimize it with low monthly fluctuation. Originality/value – Very few studies exist from East European distribution issues, and particularly that of paper industry. Also used quantitative method of DEA is relatively new in this context and gives valuable insights for the distribution efficiency development.
Article
In recent years, reverse logistics (RL) has become a field of importance for all organizations due to growing environmental concerns, legislation, corporate social responsibility and sustainable competitiveness. RL refers to the sequence of activities required to collect the used product from the customers for the purpose of either reuse or repair or re-manufacture or recycle or dispose of it. Perusal of the literature shows that research in the field of RL is in evolving phase and issues pertaining to adoption and implementation, forecasting product returns, outsourcing, RL networks from secondary market perspective, and disposition decisions have not been reviewed extensively. This study attempts to fill the existing gap through literature review on these issues, and outline the future directions for research based on research gap analysis. Total 242 published articles were selected, categorized, analyzed, and gaps in literature were identified to suggest for future research opportunities. The review may be useful for academicians, researchers and practitioners for better understanding of RL and guidance for future research.
Article
Papermaking is regarded as an industry that consumes a great amount of energy and produces serious pollution. The papermaking industry in China, which has a large population and rapid economic development, is indispensable and presents a trend of rapid development. China and the rest of the world pay considerable attention to resource conservation and environmental protection. Therefore, determining how the papermaking industry can realize cleaner production and sustainable development is an urgent issue that should be addressed. This paper introduces Guangdong Silver Island Lake (GSIL) Papermaking Park, which realizes cleaner production and sustainable development by developing circular economy (CE). This park constructs a CE industrial mode by recycling energy, water, and materials. After 10 years of implementation, the CE plan of GSIL Papermaking Park has integrated the resources of the papermaking and power industries horizontally, thus forming the unique development mode of its CE. The resource consumption, resource comprehensive utilization, and pollutant emission indexes of the park have reached the advanced level in the papermaking industry of China.
Article
High logistics and handling costs prevent the bioenergy industry from making a greater contribution to the present energy market. Therefore, a mathematical model, OPTIMASS, is presented to optimise strategic (e.g. facility location and type) and tactical (e.g. allocation) decisions in all kinds of biomass-based supply chains. In addition to existing models, OPTIMASS evaluates changes in biomass characteristics due to handling operations which is needed to meet the requirements set to biomass products delivered at a conversion facility. Also, OPTIMASS considers the re-injection of by-products from conversion facilities which can play a decisive role in the determination of a sustainable supply chain. The scenario analysis illustrates the functionalities of OPTIMASS in the optimisation of an existing supply chain, the definition of the optimal location of new conversion facilities and the definition of the optimal configuration of a supply chain. OPTIMASS, as a deterministic model, does not consider variability related to e.g. seasonal changes which can be a major obstacle. However, a thorough sensitivity analysis of influencing factors must give insight in the induced changes in the supply chain. The sensitivity analysis in this paper investigates the influence of uncertainty in biomass production, energy demand and of changes in transport distance. The analysis demonstrate that OPTIMASS can be used as an inspiring tool to investigate the possible effects of governmental decisions, of considering new biomass material, new facilities, of technology changes, etc. The coupling with GIS allows characterisation and visualisation of problems in advance and visualisation of results in an interpretative way.
Article
The Influence of International Factors on the Competitiveness of Multinational Value Creation Networks: The Case of Canadian Pulp and Paper Companies Customs fees, exchange rates, business tax rates, national production factors (natural resources, labour, capital and infrastructures), transfer price, trade barriers and geographical distribution of supply and demand are all factors that have a major impact on the performance of a multinational company. The relative position of countries regarding most of these factors evolves over time. To stay competitive, multinational businesses must therefore periodically restructure their value creation networks to adapt to structural changes in international factors. This article shows that such observations are particularly true of Canadian pulp and paper companies. After analyzing the evolution of international factors that shape the performance of these companies, we indicate how currently available logistics network optimization models can be used to restructure these companies’ value creation networks. The article ends with a discussion of the need to extend existing models of network optimization to more fully embrace all factors crucial to the pulp and paper industry.
Article
This paper addresses the lot-sizing and scheduling problem of pulp and paper mills involving multiple paper machines. The underlying multi-stage integrated production process considers the following critical units: continuous digester, intermediate stocks of pulp and liquor, multiple paper machines and a recovery line to treat by-products. This work presents a mixed integer programming (MIP) model to represent the problem, as well as a solution approach based on a customized genetic algorithm (GA) with an embedded residual linear programming model. Some GA tools are explored, including literature and new operators, a novel diversification process and other features. In particular, the diversification process uses a new allele frequency measure to change between diversification and intensification procedures. Computational results show the effectiveness of the method to solve relatively large instances of the single paper machine problem when compared to other single paper machine solution methods found in the literature. For multiple paper machine settings, in most runs the GA solutions are better than those obtained for the MIP model using an optimization software.
Article
This study examines a two-stage two-dimensional cutting stock problem encountered by a paper mill company. The problem includes various machine-related and operational constraints based on real-world situations. Paper products are manufactured using two major cutting processes. Each cutting machine has a specific minimum and maximum width for input and output rolls and is limited by the maximum number of rolls it can cut at the same time. A mathematical model is presented to formally address the problem and an efficient multiple-choice knapsack-based heuristic algorithm is proposed to solve the problem. To demonstrate the efficiency of the proposed heuristic algorithm, computational experiments are conducted on test data-set generated from real-world data provided by a large paper mill company in the Republic of Korea.
Article
The pulp and paper industry is one of the most energy-intensive industries worldwide. In 2007, it accounted for 5% of total global industrial energy consumption and 2% of direct industrial carbon dioxide (CO2) emissions. An energy audit is a primary step toward improving energy efficiency at the facility level. This paper describes a plant-wide energy audit aimed at identifying energy conservation and CO2 mitigation opportunities at a paper mill in Guangdong province, China. We describe the energy audit methods, relevant Chinese standards, methods of calculating energy and carbon indicators, baseline energy consumption and CO2 emissions of the audited paper mill, and nine energy-efficiency improvement opportunities identified by the audit. For each of the nine options, we evaluate the energy conservation and associated CO2 mitigation potential. The total technical energy conservation potential for these nine opportunities is 967.8 terajoules (TJ), and the total CO2 mitigation potential is equal to 93,453 tonnes CO2 annually, representing 14.4% and 14.7%, respectively, of the mill's total energy consumption and CO2 emissions during the audit period. (c) 2012 Elsevier Ltd. All rights reserved.
Article
This paper describes a cradle-to-gate life cycle assessment of offset paper production in Brazil. The production system is classified into two subsystems: a forest production subsystem, which involves seedling production, soil preparation, seedling planting, forest maintenance, and wood harvesting and transport processes; and an industrial production subsystem, involving wood pulp extraction and bleaching, chemical recovery, and offset paper manufacturing processes. The environmental analysis includes the primary energy demand, environmental impact assessment, and land use indicators. The primary energy demand indicated that the largest amount of both renewable and non-renewable primary energy is consumed by the industrial production subsystem, accounting for 91.0% of the total energy demand. The potential environmental impact assessment included eight impact categories: acidification, ecotoxicity, global warming, human toxicity – cancer effects, human toxicity – non-cancer effects, nutrient enrichment, ozone depletion, and photochemical oxidation. Most of the potential impacts are attributed to the processes of pulp extraction and bleaching, and offset paper manufacturing, mainly due to the production of electricity and thermal energy. As for impacts on land use during the forest activities, a recent developed approach was applied for the regionalized assessment of impacts. Land occupation impacts on erosion resistance, physicochemical filtration, and mechanical filtration showed a reduction in the soil ecological functions, whereas groundwater recharge indicated a credit for the performance of the soil function. With a view to reducing the main life cycle impacts of the industrial production subsystem, an evaluation is made of alternative production scenarios. The best scenario was the substitution of biomass and diesel in the energy generation unit by biomass gasification and optimization of the recovery boiler.
Article
In this study, a pulp and paper mill (PPM) in the SEKA Papermaking Plant in Izmit, Turkey, is analysed through energy and exergy balances. The plant utilises recycled waste paper for papermaking. This type of raw material input makes the process highly sophisticated. The pulping uses strictly mechanical processes, such as digestion, separation by screening and hydrocyclone, and refining. The milling, as an integrated process, provides the final operations necessary to prepare the conditions required for the end-product by stock-preparation, wiring, rolling, and drying by dewatering, pressing, and evaporation. The possibility of making the entire process more thermodynamically efficient is discussed by calculating the energy and exergy losses for all the mechanical and physical sub-processes. The study shows that the energy efficiencies for each of the mechanical and physical steps in the PPM vary between 34% and 97.4%, whereas the exergy efficiencies vary between 30.2% and 94.2%. In conclusion, based on the results from the energy and exergy flow analyses, the exergy output can be improved through more efforts directed primarily to further measurements toward more efficient energy utilisation in the PPM. Crown Copyright (c) 2013 Published by Elsevier Ltd. All rights reserved.
Article
For the Nordic paper industry the years 2001-2007 were a culmination point as to paper production and deliveries. The study uses plant level empirical time series data from these years from one large integrated Finnish paper mill. The research data covers complete customer data and cost components, and a major supplier for European paper markets. The case company worked actively with a customer base and concentrated on the most profitable markets. However, some unprofitable deliveries, which still covered the variable and fixed costs, also supported the operation of the mill and the continuing of the 24/7 shift. The results indicate that even with matured and bulky products like paper, it is still possible to operate on the basis of separated pricing, some bargaining power, and customized focus. In this respect, the markets do not seem to follow the economic theory expectation entirely, that is, for such a mature and bulky product market price differentiation should not be possible. However, to utilize this, it requires up-to-date information system concerning internal cost accounting, together with an emphasis on the management to have an active role with the customer base.
Article
A paper manufacturing plant minimizes its production cost by using long production runs that combine the demands from its various customers. As jobs are completed, they are released to distribution for delivery. Deliveries are made by railcars, each of which is dedicated to one customer. Long production runs imply that maximizing railcar utilization requires holding the cars over several days or holding completed jobs within the loading facility. Each of these methods imposes a cost onto the distribution function. We find how distribution can minimize its cost, given production's schedule. We then consider the problem of minimizing the company's overall cost of both production and distribution. A computational study using general data illustrates that the distribution cost is reduced by 25.80% through our proposed scheme, and that the overall cost is reduced an additional 4.40% through our coordination mechanism. An optimal algorithm is derived for a specific plant's operations.This article is protected by copyright. All rights reserved.
Article
Increasing energy prices and market volatilities force energy intensive industries to implement energy management systems in order to ensure competitiveness. In this paper, we focus on the strategic level of energy management, specifically, on the analysis of the internal and external conditions that form the basis for strategic development. For this, we selected the case of the Austrian paper and pulp industry. We applied a hybrid method by combining an analysis of strengths, weaknesses, opportunities and threats with an analytic hierarchy process which was based on a survey of expert opinion. The results show that cost-related factors predominate. According to our analysis, the four most important factors are all directly linked to energy costs, energy efficiency, and the energy market. Experts pay little attention to environmental issues or to energy market volatilities. Apart from that, the combination of an analysis of strengths, weaknesses, opportunities and threats with an analytic hierarchy process promises to be a valuable tool for strategic energy management. This is especially true for energy intensive companies and/or sectors, since it enables decision makers to take strategic decisions based on a systematic understanding of the main issues.
Article
Opportunity costs of environmental regulations (OCER) are an important consideration when governments make decisions on the formulation of environmental policies and when plants make decisions in response to environmental policies. Aimed at measuring OCER, the current paper proposes an approach in which the achievements of environmental control implemented by a production unit are considered. We quantify and define the achievements as "desirable" environmental outputs. In this way, for a production unit, producing normal desirable outputs and reaching environmental outputs is a tradeoff. OCER is measured by calculating a maximum amount of increasable normal outputs when production units do not need to produce any environmental outputs. Directional distance functions and data envelopment analysis (DEA) techniques are used to calculate OCER. The approach is applied to an empirical illustration based on Taiwan's port industry covering the period 2001–2007. It is found that the industry incurred opportunity costs due to environmental regulations equivalent to 1.8% of total revenue it creates. However, the OCER are significantly less than the economic losses due to productive inefficiency (PIE).
Article
We discuss the harvesting of a single forest block from an operations scheduling viewpoint. We report on a harvesting case study, based on practical data from a commercial enterprise, involving minimum and maximum time lags and resource constraints. It appears that the scheduling of the harvesting forest blocks is a significantly different scenario from those represented by the scheduling models available in the literature. The differences come about because: the duration of each operation is dependent upon the combination of constrained resources allocated to it, individual worker-equipment allocation is restricted, and minimum or maximum time lags can be imposed. We report on harvesting operations, a scheduling model, and solution procedures, designed specifically for the case study.
Article
We discuss cutting stock problems (CSPs) from the perspective of the paper industry and the financial impact they make. Exact solution approaches and heuristics have been used for decades to support cutting stock decisions in that industry. We have developed polylithic solution techniques integrated in our ERP system to solve a variety of cutting stock problems occurring in real world problems. Among them is the simultaneous minimization of the number of rolls and the number of patterns while not allowing any overproduction. For two cases, CSPs minimizing underproduction and CSPs with master rolls of different widths and availability, we have developed new column generation approaches. The methods are numerically tested using real world data instances. An assembly of current solved and unsolved standard and non-standard CSPs at the forefront of research are put in perspective.
Article
There are two broad categories of risk, which influence the supply chain design and management. The first category is concerned with uncertainty embedded in the model parameters, which affects the problem of balancing supply and demand. The second category of risks may arise from natural disasters, strikes and economic disruptions, terroristic acts, and etc. Most of the existing studies surveyed these types of risk, separately. This paper proposes a robust and reliable model for an integrated forward–reverse logistics network design, which simultaneously takes uncertain parameters and facility disruptions into account. The proposed model is formulated based on a recent robust optimization approach to protect the network against uncertainty. Furthermore, a mixed integer linear programing model with augmented p-robust constraints is proposed to control the reliability of the network among disruption scenarios. The objective function of the proposed model is minimizing the nominal cost, while reducing disruption risk using the p-robustness criterion. To study the behavior of the robustness and reliability of the concerned network, several numerical examples are considered. Finally, a comparative analysis is carried out to study the performance of the augmented p-robust criterion and other conventional robust criteria.
Article
Chemical pulp is one of the most important raw materials used in the paper industry. This material is known to make a significant contribution to the water footprint and cost of final paper products; therefore, chemical pulp is crucial in determining the competitiveness of final products’. Several studies have focused on these aspects, but there have been no previous reports on the integrated application of raw material water footprint accounting and costs in the definition of the optimal supply mix of chemical pulps from different countries. The current models that have been applied specifically to the paper industry are based mainly on general sectorial data; therefore, they cannot reflect the importance of the efficiency of the different processes in the supply chain of paper production. The objective of this study was to develop a multi-objective optimization model to identify the supply mix that minimizes the water footprint accounting results and costs of chemical pulp, thereby facilitating the assessment of the water footprint by accounting for different chemical pulps purchased from various suppliers, with a focus on the efficiency of the production process. Water footprint accounting was adapted to better represent the efficiency of pulp and paper production. A multi-objective model for supply mix optimization was also developed using multi-criteria decision analysis (MCDA). Water footprint accounting confirmed the importance of the production efficiency of chemical pulp, which affected the final results, with an average factor of 4.7 m3 wood/t paper. The MCDA that we developed was used to determine the optimal mix of chemical pulps from different countries, which demonstrated how the optimal mix changed when considering only one of the two variables. Herein, we also discuss the latest developments in impact assessments related to water based on a life cycle assessment, which should be used as a framework for the future development of the model that is presented.
Article
This paper presents a new application software for control configuration selection of interconnected industrial processes, called ProMoVis. Moreover, ProMoVis is able to visualize process models and process layout at the physical level together with the control system dynamics. The software consists of a builder part where the visual representation of the interconnected process is created and an analyzer part where the process is analyzed using different control configuration selection tools. The conceptual idea of the software is presented and the subsequent design and implementation of ProMoVis are discussed. The implemented analysis methods are briefly described including their usage and implementation aspects. The use of ProMoVis is demonstrated by an application study on the stock preparation process at SCA Obbola AB, Sweden. The results of this study are compared with the currently used control strategy. The study indicates that ProMoVis introduces a systematic and comprehensive way to perform control configuration selection. ProMoVis has been released under the Apache Open Source license.
Article
The objective of this paper is to estimate the energy saving potential in China's paper industry by determining energy intensity under different scenarios. Cointegration model and stability test are applied to formulate the equilibrium equation. Results show that energy price, industry structure, profit margin and technology have significant impact as they are negatively correlated to changes in energy intensity. Three scenarios (BAU (business as usual), intermediate and active) are designed to estimate the future trend of energy intensity in paper industry. In 2010, the energy intensity (energy consumption per unit of value added) was 4 tce/10,000 RMB, and by the scenarios it is expected to considerably decline. According to the BAU (business as usual) scenario, the energy intensity will decrease to 2.56, 1.43 and 0.70 tce/10,000 RMB by 2015, 2020 and 2025, respectively. With respect to the intermediate scenario it is expected to drop further to 0.44 tce/10,000 RMB. Yet by the active scenario, the energy intensity is expected to considerably decline to 0.36 tce/10,000 RMB by 2025. Using the BAU forecast as a baseline, the quantity of energy savings is estimated to be 185.6 billion tce by 2025. Considering this important potential, we also provided some policy suggestions.
Article
The purpose of this paper is to analyse altering energy demand patterns and energy factor substitution possibilities over time in the pulp and paper industry in order to increase our understanding of suitable policy options for increasing energy efficiency. The investigation employs a flexible translog cost function and an unbalanced panel data set covering 32 pulp and paper mills over the time period 1974–2005 in Sweden. Specifically, we test whether energy factor demand patterns in the industry for the period 1974–1990 differ from those during the latter period, 1991–2005. The empirical results reveal that even though the Swedish pulp and paper industry is relatively insensitive to changes in energy factor input prices in the short run, we find evidence of significant changes over time. According to the results, the own-price sensitivity of fuel has increased since the 1970s and the 1980s, thus indicating that fuel demand has become more sensitive to short-run changes in relative prices. The estimated cross-price elasticities between electricity and fuel also support the hypothesis of increased substitutability over time. However, the null hypothesis of an equal own-price elasticity of electricity demand across the two time periods cannot be rejected.
Article
This study proposes an integrated, reverse logistics supply chain planning process with modular product design that produces and markets products at different quality levels. A mixed integer programming (MIP) model formulates the overall planning process required to maximize profit by considering the collection of returned products, the recovery of modules and the proportion of the product mix at different quality levels. This paper proposes the collection of returnables (end-of life, defective, product under warranty) through retail outlets combined with the recovery of modules from the collected products using a network of recovery service providers. The proposed modular product design approach would create a design criterion that provides an improved recovery process at a lower cost. This study uses a total supply chain view that considers the production, transportation and distribution of products to customers, while a numerical problem illustrates the applicability of the models.
Article
This article describes a real-world production planning and scheduling problem occurring at an integrated pulp and paper mill (P&P) which manufactures paper for cardboard out of produced pulp. During the cooking of wood chips in the digester, two by-products are produced: the pulp itself (virgin fibers) and the waste stream known as black liquor. The former is then mixed with recycled fibers and processed in a paper machine. Here, due to significant sequence-dependent setups in paper type changeovers, sizing and sequencing of lots have to be made simultaneously in order to efficiently use capacity. The latter is converted into electrical energy using a set of evaporators, recovery boilers and counter-pressure turbines. The planning challenge is then to synchronize the material flow as it moves through the pulp and paper mills, and energy plant, maximizing customer demand (as backlogging is allowed), and minimizing operation costs. Due to the intensive capital feature of P&P, the output of the digester must be maximized. As the production bottleneck is not fixed, to tackle this problem we propose a new model that integrates the critical production units associated to the pulp and paper mills, and energy plant for the first time. Simple stochastic mixed integer programming based local search heuristics are developed to obtain good feasible solutions for the problem. The benefits of integrating the three stages are discussed. The proposed approaches are tested on real-world data. Our work may help P&P companies to increase their competitiveness and reactiveness in dealing with demand pattern oscillations.
Article
The Scandinavian mechanical pulp and paper industry has been facing great challenges during the past decades, mainly because of declining demand for newsprint, and higher prices on raw material and energy. One way of increasing profitability is to produce more value-added products besides the production of pulp and paper. In this study, integration potentials of three possible future biomass gasification-based energy mills with an existing thermo-mechanical pulp (TMP) mill, co-located with a sawmill, have been evaluated. The product gas was utilized for electricity production in a gas turbine, for production of methanol or for production of Fischer–Tropsch (FT) liquids. Integration of the energy mills showed good potential as the TMP mill constitutes a heat sink for which the excess heat from the energy mills can be utilized all year round. However, since there is little excess heat from the TMP mill at the required level to be utilized for biomass drying, for example, heat integration is typically one way. It has also been shown that integration of biomass gasification with a TMP mill results in larger CO2 emissions reduction than stand-alone operation. Still, compared to co-firing biomass in a coal power plant, the energy mills all have lower potentials for CO2 emissions reduction.
Article
Paper production is an energy-intensive process and accounted for about 9% of industrial energy demand in Germany in 2008. There have only been slow improvements in energy efficiency in the paper industry over the past twenty years. Policies can accelerate the progress made, but knowledge about the remaining efficiency potentials and their costs is a prerequisite for their success.We assess 17 process technologies to improve energy efficiency in the German pulp and paper industry up to 2035 using a techno-economic approach. These result in a saving potential of 34 TJ/a for fuels and 12 TJ/a for electricity, which equal 21% and 16% of fuel and electricity demand, respectively. The energy savings can be translated into mitigated CO2 emissions of 3 Mt. The larger part of this potential is found to be cost-effective from a firm's perspective. The most influential technologies are heat recovery in paper mills and the use of innovative paper drying technologies. In conclusion, significant saving potentials are still available, but are limited if we assume that current paper production processes will not change radically. Further savings would be available if the system boundaries of this study were extended to e.g. include cross-cutting technologies.
Article
The objective of this paper is to analyze electricity demand behaviour in the Swedish pulp and paper industry in the context of the increased interest in so-called voluntary energy efficiency programs. In these programs tax exemptions are granted if the participating firms carry out energy efficiency measures following an energy audit. We employ a panel data set of 19 pulp and paper firms, and estimate both the own- and cross-price elasticities of electricity demand as well as the impact of knowledge accumulation following private R&D on electricity use. The empirical results show that electricity use in the Swedish pulp and paper industry is relatively own-price insensitive, and the self-reported electricity savings following the voluntary so-called PFE program support the notion of important information asymmetries at the company level. However, the results display that already in a baseline setting pulp and paper firms tend to invest in private R&D that have electricity saving impacts, and our model simulations suggest that up to about one-third of the industry sector's self-reported electricity savings in PFE could be attributable to pure baseline effects. Future evaluations of voluntary energy efficiency programs must increasingly recognize the already existing incentives to reduce energy use in energy-intensive industries.