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The Québec Ministry of Natural Resources Uses Linear Programming to Understand the Wood-Fiber Market

Author

Listed:
  • Antoine Gautier

    (Département Opérations et systèmes de décision, Faculté des sciences de l'administration, Université Laval, Québec (QC), Canada G1K 7P4)

  • Bernard F. Lamond

    (Département Opérations et systèmes de décision, Université Laval)

  • Daniel Paré

    (Ministère des Ressources naturelles du Québec, Secteur Énergie, Direction de la planification et de la recherche, 5700 4ème Avenue Ouest, Charlesbourg (QC), Canada G1H 6R1)

  • François Rouleau

    (Ministère des Ressources naturelles du Québec, Direction du développement de ľindustrie des produits forestiers, 880, Chemin Ste-Foy, Québec (QC), Canada G1S 4X4)

Abstract

In spring 1996, Québec's Ministry of Natural Resources began using a descriptive mathematical programming model to support various negotiations in the wood-fiber markets. The model, which uses linear programming to solve an economic-equilibrium program, allows the representative of the ministry to come to industry roundtables with accurate scenario analyses for the wood-fiber market. The tool we developed and implemented uses the large amounts of data available to government agencies to foresee and explain the general economic trends facing both lumber and paper producers. During its development, our team of operations-research experts, economists, engineers, and civil servants developed an unprecedented understanding of the wood-fiber market. The ministry incorporated these insights in subsequent government policy aimed at improving sawmill yield and stabilizing market behavior.

Suggested Citation

  • Antoine Gautier & Bernard F. Lamond & Daniel Paré & François Rouleau, 2000. "The Québec Ministry of Natural Resources Uses Linear Programming to Understand the Wood-Fiber Market," Interfaces, INFORMS, vol. 30(6), pages 32-48, December.
    • Handle: RePEc:inm:orinte:v:30:y:2000:i:6:p:32-48
    DOI: 10.1287/inte.30.6.32.11625
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    References listed on IDEAS

    as
    1. Antoine Gautier & Frieda Granot, 1995. "Forest Management: A Multicommodity Flow Formulation and Sensitivity Analysis," Management Science, INFORMS, vol. 41(10), pages 1654-1668, October.
    2. 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.
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    Cited by:

    1. Fabio Vitor & Todd Easton, 2018. "The double pivot simplex method," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 87(1), pages 109-137, February.
    2. Patrik Flisberg & Mikael Rönnqvist & Stefan Nilsson, 2009. "Billerud Optimizes Its Bleaching Process Using Online Optimization," Interfaces, INFORMS, vol. 39(2), pages 119-132, April.

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