Mixed integer linear programming approaches for solving the raw material allocation, routing and scheduling problems in the forest industry

Abstract

Transportation planning in forest industry is a challenging activity since it involves complex decisions about raw material allocation, vehicle routing and scheduling of trucks arrivals to both harvest areas and the plants. In the Argentine context, specifically in the Argentinean Northeast (NEA) region, the forest industry plays essential role for the economic development and, among the included activities, the transportation is the key element considering the volumes that must be moved and the distances to be traveled. Therefore, enhancing efficiency in the transportation activity improves significantly the performance of this industry. In this work, a Mixed Integer Linear Programming (MILP) model is presented, where raw material allocation, vehicle routing and scheduling of trucks arrivals are simultaneously addressed. Since the resolution times of the proposed integrated MILP model are prohibitive for large instances, a hierarchical approach is also presented. The considered decomposition approach involves two stages: in the first phase, the raw material allocation and vehicle routing problems are solved through a MILP model, while in the second phase, fixing the route for each truck according to the results of the previous step, the scheduling of truck arrivals to both the harvest areas and the plants is solved through a new MILP model. The obtained results show that the proposed approach is very effective and could be easily applied in this industry.