An optimization approach for multiperiod production planning in a sawmill

Forest industry plays an important role in the national economic and social context, due to the production volume with significant impact in the region where it is located (northeast of Argentina). Sawmill production planning is a key factor for the development of this industry with serious challenges taking into account the involved interrelated tasks. Assuming a multiperiod perspective, several elements can be considered and more interesting results can be attained. The appropriate procurement of logs is an important part of the problem costs and logging can be improved if the sawmill consumption can be foreseen in advance through an integrated approach. In this work, a mixed integer linear programming (MILP) model for the optimal multiperiod planning in sawmills is proposed. An efficient solution is obtained considering a set of cutting patters (CP) for each type of log that optimize raw material yield. As a result of this optimization, appropriate procurement, distribution policy and stock management of logs can be achieved, as well as suitable production plan along the considered periods in order to fulfil the demand, with significant impact on the sawmill performance and profitability.