Inventory management and handling in the forest products industry

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A value creation network encompasses all of the companies and business units that are implicated in the supply, production and distribution of a product that is destined for a particular market. Some of the major issues at stake in the management of a value creation network are the integration and coordination of operations among the different business units and companies involved in the network. The proposed research program focuses on part of the network extending from wood procurement to manufacturing with special attention to the log yard. The objectives include identifying and modeling cost drivers, identifying best practices in yard management, and evaluating gains from greater integration and coordination among the forest-yard-mill decisions. The objectives will be pursued through the completion of three Master degree projects. This proposal represents a gateway into the new field of inventory management and handling in the forest products industry. It proposes innovations in sorting and inventory strategies for value creation, the development of inventory control strategies to better coordinate yard and mill operations, and identification of best-practices in inventory management and handling. The forest industry needs various forms of expertise if they wish to efficiently conceive and direct their own value creation network. This proposal contributes towards the training of highly qualified personnel in a field that has been studied very little in the forest industry.