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Supply Chain Optimisation in the Paper Industry

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Abstract

We describe the formulation and development of a supply-chain optimisation model for Fletcher Challenge Paper Australasia (FCPA). This model, known as Paper Industry Value Optimisation Tool (PIVOT), is a large mixed integer program that finds an optimal allocation of supplier to mill, product to paper machine, and paper machine to customer, while at the same time modelling many of the supply chain details and nuances which are peculiar to FCPA. PIVOT has assisted FCPA in solving a number of strategic and tactical decision problems, and provided significant economic benefits for the company.

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References

  1. I.S. Ferguson and R.E. Johnston, Fibre supply models for the Australian and New Zealand paper industry, Appita J. 52(3) (1999).

  2. P.J. Filmer, Operations research! To use or not to use?, Appita J. 32(3) (1978).

  3. Fletcher Challenge Paper Annual Review (1999).

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  7. A.B. Philpott and G.R. Everett, Supply chain optimisation in the paper industry, in: Proceedings 34 th ORSNZ Conference, Hamilton, New Zeland (December 1999).

  8. B.G. Raghavendra and A. Arivalagan, Applications of operations research techniques in paper industry: A review of the state of the art, IPPTA 5(3) (1993).

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Authors and Affiliations

  1. School of Engineering, University of Auckland, Private Bag, Auckland, New Zealand

    Andrew Philpott

  2. Fletcher Challenge Paper Limited, Private Bag, 92114, Auckland, New Zealand

    Graeme Everett

Authors
  1. Andrew Philpott
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  2. Graeme Everett
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Philpott, A., Everett, G. Supply Chain Optimisation in the Paper Industry. Annals of Operations Research 108, 225–237 (2001). https://doi.org/10.1023/A:1016071331034

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  • DOI: https://doi.org/10.1023/A:1016071331034

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