The applicability of five mathematical programming methods, namely standard linear programming, parametric programming, goal programming, mixed integer programming and integer programming is discussed as a planning tool for the choice of wood procurement method.
Theoretically, the goal programming approach seems to be the best routine for mathematical handling of problems related to wood procurement. The parametric approach must include enough large post-optimality analysis routine. If the effect of the variables expressed with different measures is to be studied, interpretation of the economic information given by the approach becomes a problem. The other drawback is that the approach does not allow determination of the hierarchy of the goals objectively as they depend on the subjective preferences of the decision maker.
From the practical point of view, standard linear programming is the best method if the objective function can be formulated in economic terms, for instance. If there are several goals to be attained or satisfied the best method is goal programming.
According to the sub-studies, every method under consideration can be used as a solution routine for the minimization of wood procurement costs. In cost minimization the best methods are goal programming and standard linear programming. The best method for harvesting system evaluation purposes is parametric because it allows varied cost calculations within a certain cost range. The best method for harvesting equipment investment planning is mixed integer programming with binary decision variables.
The more complicated and restricted the problem environment is, the better the mathematical programming approach will be, also in harvesting related problems.
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The nature areas surrounding the capital of Norway (Oslomarka), comprising 1 700 km2 of forest land, are the recreational home turf for a population of 1.2 mill. people. These areas are highly valuable, not only for recreational purposes and biodiversity, but also for commercial activities. To assess the impacts of the challenges that Oslo municipality forest face in their management, we developed four optimization problems with different levels of management constraints. The constraints consider control of harvest level, guarantee of minimum old-growth forest area and maximum open area after final harvest. For the latter, to date, no appropriate analyses quantifying the impact of such a constraint on economy and biomass production have been carried out in Norway. The problem solved is large due to both the number of stands and number of treatment schedules. However, the model applied demonstrated its relevance for solving large problems involving maximum opening areas. The inclusion of maximum open area constraints caused 7.0% loss in NPV compared to the business as usual case with controlled harvest volume and minimum old-growth area. The estimated supply of 20-30 GWh annual energy from harvest residues could provide a small, but stable supply of energy to the municipality.