Optimal design of the supply chain for cogeneration of energy from forest biomass

Abstract

In the forestry industry, residues are generated when the stands are exploited and during the production of wood. The residues can be used to obtain incomes and generate thermal and electrical energy. This work presents a MILP formulation aimed at optimizing the topology of the supply chain and the material flows of a forestry-industrial company that has a power generation plant. The objective function of the formulation aims at  maximizing the company profit while its constraints set the supply chain configuration. Optimal material flows within the chain are consequently fixed. The model of the supply-chain was solved with GAMS and the optimal configuration and flows for several scenarios were obtained. Analyzing these variations, it can be affirmed that considering a new structure in the supply chain allows improving the profitability of the organization.