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Use of OR Systems in the Chilean Forest Industries

Author

Listed:
  • Rafael Epstein

    (Department of Industrial Engineering, University of Chile, República 701, Santiago, Chile)

  • Ramiro Morales

    (Department of Industrial Engineering, University of Chile, República 701, Santiago, Chile)

  • Jorge Serón

    (Bosques Arauco Los Horcones s/n, Concepción, Chile)

  • Andres Weintraub

    (Department of Industrial Engineering, University of Chile, República 701, Santiago, Chile)

Abstract

The Chilean forestry sector is composed of private firms that combine large timber-land holdings of mostly pine plantations and some eucalyptus with sawmills and pulp plants. Since 1988, to compete in the world market, the main Chilean forest firms, which have sales of about $1 billion, have started implementing OR models developed jointly with academics from the University of Chile. These systems support decisions on daily truck scheduling, short-term harvesting, location of harvesting machinery and access roads, and medium- and long-term forest planning. Approaches used in solving these complex problems include simulation, linear programming with column generation, mixed-integer LP formulations, and heuristic methods. The systems have led to a change in organizational decision making and to estimated gains of at least US $20 million per year.

Suggested Citation

  • Rafael Epstein & Ramiro Morales & Jorge Serón & Andres Weintraub, 1999. "Use of OR Systems in the Chilean Forest Industries," Interfaces, INFORMS, vol. 29(1), pages 7-29, February.
    • Handle: RePEc:inm:orinte:v:29:y:1999:i:1:p:7-29
    DOI: 10.1287/inte.29.1.7
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    References listed on IDEAS

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    1. Andrés Weintraub & Greg Jones & Adrian Magendzo & Mary Meacham & Malcolm Kirby, 1994. "A Heuristic System to Solve Mixed Integér Forest Planning Models," Operations Research, INFORMS, vol. 42(6), pages 1010-1024, December.
    2. Andres Weintraub & Rafael Epstein & Ramiro Morales & Jorge Seron & Pier Traverso, 1996. "A Truck Scheduling System Improves Efficiency in the Forest Industries," Interfaces, INFORMS, vol. 26(4), pages 1-12, August.
    3. Andrés Weintraub & B. Bruce Bare, 1996. "New Issues in Forest Land Management from an Operations Research Perspective," Interfaces, INFORMS, vol. 26(5), pages 9-25, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eduardo González & Leonardo Epstein, 2015. "Minimum cost in a mix of new and old reusable items: an application to sizing a fleet of delivery trucks," Annals of Operations Research, Springer, vol. 232(1), pages 135-149, September.
    2. Mikael Rönnqvist & Sophie D’Amours & Andres Weintraub & Alejandro Jofre & Eldon Gunn & Robert Haight & David Martell & Alan Murray & Carlos Romero, 2015. "Operations Research challenges in forestry: 33 open problems," Annals of Operations Research, Springer, vol. 232(1), pages 11-40, September.
    3. Rafael Epstein & Andrés Weintraub & Pedro Sapunar & Enrique Nieto & Julian B. Sessions & John Sessions & Fernando Bustamante & Hugo Musante, 2006. "A Combinatorial Heuristic Approach for Solving Real-Size Machinery Location and Road Design Problems in Forestry Planning," Operations Research, INFORMS, vol. 54(6), pages 1017-1027, December.
    4. Van Horne, Constance & Frayret, Jean-Marc & Poulin, Diane, 2006. "Creating value with innovation: From centre of expertise to the forest products industry," Forest Policy and Economics, Elsevier, vol. 8(7), pages 751-761, October.
    5. Jianzhong Xiao & Xiaolin Wang & Ran Wang, 2016. "Research on Factors Affecting the Optimal Exploitation of Natural Gas Resources in China," Sustainability, MDPI, vol. 8(5), pages 1-13, May.
    6. Baselli, Gianluca & Contreras, Felipe & Lillo, Matías & Marín, Magdalena & Carrasco, Rodrigo A., 2020. "Optimal decisions for salvage logging after wildfires," Omega, Elsevier, vol. 96(C).
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    9. Pamela Alvarez & Jorge Vera, 2014. "Application of Robust Optimization to the Sawmill Planning Problem," Annals of Operations Research, Springer, vol. 219(1), pages 457-475, August.
    10. Chauhan, Satyaveer S. & Frayret, Jean-Marc & LeBel, Luc, 2009. "Multi-commodity supply network planning in the forest supply chain," European Journal of Operational Research, Elsevier, vol. 196(2), pages 688-696, July.
    11. Leo Bont & Hans Heinimann & Richard Church, 2015. "Concurrent optimization of harvesting and road network layouts under steep terrain," Annals of Operations Research, Springer, vol. 232(1), pages 41-64, September.
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    13. Larry J. LeBlanc & James A. Hill & Gregory W. Greenwell & Alexandre O. Czesnat, 2004. "Nu-kote’s Spreadsheet Linear-Programming Models for Optimizing Transportation," Interfaces, INFORMS, vol. 34(2), pages 139-146, April.

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