### Abstract

The linear programming model of forest products
industries documented in this report is a mathematical
representation of resource allocation alternatives in the
production system. The model is developed for the
investigation of feasible and optimal resource allocation
structures under varying assumptions.
These assumptions define availabilities of primary
resources, process alternatives, technological
development trends, marketing possibilities, requirements
on final production, capacities, environmental factors
and the objectives applied in optimisation.
Raw wood and energy are the most important primary
resources in forest industries, and in the production of
paper these two primary resources substitute each other.
For many paper grades, the same quantity can be produced
by using energy and wood in varying proportions. The flow
of resources in forest industries forms a very
complicated network with many process alternatives and
many ties between the processes. Combined production of
process steam and electricity largely based on waste
fuels from the production processes is essential for
production economy.
Owing to this complicated structure of the forest
industries' resource allocation alternatives, a
mathematical model is a necessary tool for a systematic
analysis of the alternatives.
The model documented here is a static, one-period model.
It can be extended to a dynamic LP model or to a model
which is regionally divided, and there are also other
development possibilities.
The model is developed as a part of a national energy
model research project. The objective of the project is
to develop independent models of the most important
sectors of the energy economy, which can be integrated to
form a national model.
The approach for LP model construction applied here can
be summarised as follows: Linear programming is a
mathematical theory of resource allocation. To construct
an LP model of forest industries amounts to a thorough
study of the real resource allocation alternatives in the
system. The results are documented in the form of the
constraint matrix of the mathematical problem.
Standard forms are developed for the definition of
constraints, variables and parameters.

Original language | English |
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Place of Publication | Espoo |

Publisher | VTT Technical Research Centre of Finland |

Number of pages | 72 |

ISBN (Print) | 951-38-3181-7 |

Publication status | Published - 1988 |

MoE publication type | D4 Published development or research report or study |

### Publication series

Series | Valtion teknillinen tutkimuskeskus. Tutkimuksia - Research Reports |
---|---|

Volume | 543 |

ISSN | 0358-5077 |

### Keywords

- forest products industry
- economical aspects
- modelling
- linear programming

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## Cite this

Tamminen, E., & Forsström, J. (1988).

*A linear programming model of forest products industries*. VTT Technical Research Centre of Finland. Valtion teknillinen tutkimuskeskus. Tutkimuksia - Research Reports, Vol.. 543