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Title Assessment of sustainable integration of new products into value chain through a generic decision support model: An application to the forest value chain
ID_Doc 13736
Authors Ouhimmou, M; Rönnqvist, M; Lapointe, LA
Title Assessment of sustainable integration of new products into value chain through a generic decision support model: An application to the forest value chain
Year 2021
Published
DOI 10.1016/j.omega.2019.102173
Abstract Integrating new products into an existing value chain network is a crucial step in a company's strategy to remain competitive. Businesses are evolving in an economy deeply affected by the global development through unstable markets, changes in trade agreements, increased preoccupations with land use and pollution, and technological advancements. Intrinsically, a company creates a product portfolio to target specific market needs, balance resources and capacities, lower market risks, and ensure stable revenue input. Nevertheless, changing markets increasingly complicate the set of parameters that a company must consider when securing an efficient product portfolio. This research aims to help organizations assess prospective products and optimize product integration by detecting synergies of an existing production/distribution network. To this end, we developed an analytics tool in the form of a mixed-integer linear programming model to evaluate a regional production/distribution network's strategical-level decisions. The model allows mathematical representation of a given network composed of divergent manufacturing processes, bill of materials, distribution nodes, and business-to-business circular economy. The model is applied to a realistic case study in Quebec's Mauricie region, where the introduction of eight bioproducts is evaluated for the forest value chain. The processes considered are: pressurized hot water extraction, fast pyrolysis, organosolv fractionation, and kraft lignin recovery. Our results show that biorefineries have potential economic, social and environmental impacts on the existing forest industry but are tightly linked to the governmental subsidies underlying the forest industry's incapacity to self-sufficiently sustain economic long-term viability in its development towards market maturity. (C) 2019 Elsevier Ltd. All rights reserved.
Author Keywords Forest value chain; New product assessment; Sustainability; Decision support tool; Biorefinery; Network design
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI)
EID WOS:000591503800017
WoS Category Management; Operations Research & Management Science
Research Area Business & Economics; Operations Research & Management Science
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