The System for reducing the costs of raw wood "at the mill" for forestry enterprises (pulp-and-paper mills, sawmills, plywood mills)

The System for reducing the costs of raw wood "at the mill" for forestry enterprises (pulp-and-paper mills, sawmills, plywood mills)

The Opti-Supply system helps to faster and cheaper deliver the wood to forestry enterprises (pulp-and-paper mills, sawmills, plywood mills). The system works with different types of raw materials (sawlogs, pulpwood, and chips) and various types of vehicles (rented or owned).

System functions

Opti-Supply uses unique mathematical models and algorithms to effectively address the following main tasks:

  • Automate the development of a monthly / decade plan for sending vehicles
  • Optimize the use of vehicles to reduce the average price of raw wood “at the mill”
  • Automate the formation of the daily registry for sending vehicles, taking into account their current location
  • Optimize the formation of the daily registry in order to maximize the monthly plan implementation
  • Reduce human errors in planning
  • Reduce the average cost of raw materials “at the mill”: up to 50 rub/m3 for the supply of pulpwood and up to 20 rub/m3 for the supply of chips.
When solving the problem, 2 optimization criteria are possible: minimization of the average cost of supply or minimization of the total idle time of vehicles.
 
These criteria are conflicting, therefore the System optimizes the average cost of deliveries taking into account the cost of renting vehicles.
 
When solving the problem, the System accounts for:
- constraints on the minimum number of vehicles for deliveries;
- constraints on the maximum number of vehicles simultaneously accepted by the shipper and the sequence, in which they are arriving
- supplier ratings;
- the varying density of raw wood from different suppliers in different regions
The system can be improved 
 to account for other requirements, parameters, etc.

Advantages

Reducing the average price of raw wood “at the mill”, taking into account delivery costs
Improved reliability and efficiency of the information received
Reduced time for managerial decision-making by automating the calculation and adjustment of plans
Improved efficiency of using enterprise financial resources
Reduced total costs due to complex accounting of all factors throughout the supply chain
Reduced in-process inventory and the number of required vehicles

Features

  • The System uses Customer accounting systems, which eliminates duplication of information
  • Intuitive interface and complete adaptation for Customer processes allow starting the practical use of the System very quickly
  • Support of multi-user mode with various functions and access rights

Customers

● A prototype was developed using real data of a large pulp-and-paper mill of Russia

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