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Fast-tracking value and resilience for industrial wood supply

Coordinator: Dag Fjeld, Norwegian Institute of Bioeconomy Research (NIBIO), Norway
dag.fjeld (at) nibio.no

Other partners: AT, SE
Project duration: 04/2019-12/2021

Project abstract:

The overall goal of the project was to develop virtual supply chain laboratory environments for testing alternative wood supply management practices under challenging climate scenarios. The focus was on implementing weather-driven models to ensure preserve log quality in the face of warmer weather and increasingly challenging seasonal trafficability.

In the sub-arctic region (Northern Sweden) seasonal accessibility is a primary driver for long lead-times. Weekly accessibility scenarios were developed, and a hybrid simulation/optimization approach was used to manage flows and track lead-times/log value loss. Stakeholder workshops were used for testing and discussion of the effects of alternative transport decision rules on simulated lead times and value loss. In the continental-montane region (Austria) with a high frequency of windthrow and salvage operations, limited transport capacity is the primary driver for long lead times. A simulation model was created with a focus on contingency planning with multimodal (rail) solutions to reduce lead-times and log value loss. The workshops gave the stakeholders the opportunity to experiment and experience the effect of their own decisions on lead-times and value loss. In the oceanic region (Norway) seasonal accessibility is a primary driver for long lead-times. Weather-based accessibility scenarios were implemented in a simulated training environment for weekly coordination of purchase, production and transport between participants. The training was run as a team competition for maximum net forest value, based on bonus points for high delivery fulfilment with penalties for value loss.

Workshop approaches – The respective approaches varied with respect to mathematical sophistication and workshop duration. Simulation approaches enabled rapid comparison of pre-selected decisions and system capacity alternatives within workshops of a few hours duration. The training environment approach required a minimum of one day of training. The training environment approach has now been further developed as an on-line training tool (Virtual Wood Supply Arena).

Project presentation at ForestValue kick-off seminar 23-24 May 2019: pdf
Stakeholder Article 1 GreenLane – GreenLane stakeholder workshops – approaches for testing, development and dissemination
Stakeholder Article 2 GreenLane – GreenLane RBC – developing digital solutions for monitoring forest road availability in real-time
Stakeholder Article 3 GreenLane – GreenLane IBM – enhanced value tracking in supply chain simulation