How energy price changes can affect supply chain planningat a pulp company
2013 (English)Manuscript (preprint) (Other academic)
To make a difference in the energy‐intensive process industry, we use a model for supply chain planning at a pulp company, and can through an analysis of its results show that higher profitability can be achieved. In this model of the supply chain, energy is included with respect to its revenue generating capabilities. As such, it has been shown that when energy‐intensive raw materials not only give fiber to the pulp process but also generate an energy surplus, there is room for different planning approaches to maximize the total profit. This paper refines the model and the data settings to focus more deeply on the analysis by presenting more analytical scenarios, and therefore reveals promising changes that can be done in terms of improving the current planning. The scenarios considered involve market changes for energy demand and price, and alternative production oportunities. A cross‐analysis compares the scenarios in order to reveal additional relations that are worthy to consider. For instance, the model prioritizes in its selection of pulp products to produce, out of which we provide guidance for managerial implications on where and when to increase or decrease pulp production, depending on a price change of energy. The model shows that the company can increase the total profit no matter which of the included energy parameters that increase in price. The findings therefore also point out some advantages of the model and the analysis opportunities it provides, and thus strengthening its usefulness.
Place, publisher, year, edition, pages
Supply chain planning, Energy revenues, Energy‐intensive production systems, MILP model, Process industry
Economics and Business Engineering and Technology Energy Systems Business Administration
IdentifiersURN: urn:nbn:se:liu:diva-112286OAI: oai:DiVA.org:liu-112286DiVA: diva2:765209
22nd International Conference on Production Research (ICPR 22), 28 July – 1 August 2013, Iguassu Falls, Brazil