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Introduction / Yan Feng, Jean-François Audy, Mustapha Ouhimmou, and Sophie D'Amours -- Framework for value chain optimization of forest networks in the emerging Canadian bioeconomy / Marc-André Carle, Sophie D'Amours, Eldon A. Gunn, and Reino Pulkki -- Strategic transformation of the forest industry value chain / Cédric Diffo Téguia, Virginie Chambost, Shabnam Sanaei, Sophie D'Amours, and Paul Stuart -- The roles of FPInnovations, governments, and industry in transforming Canada's forest industry / Jean Favreau and Catalin Ristea -- Decision support needs for strategic planning of Canadian forest value chains / Eldon A. Gunn and David L. Martell -- The meaning and means of environmental sustainability for the forest sector: drivers and responses in a more responsible world / Justin G. Bull and Robert A. Kozak -- Overview of wood product markets, distribution, and market research in North America: implications for value chain optimization / Christopher Gaston and François Robichaud -- Framework for information and knowledge sharing in collaborative modeling of the forest products value chain: a survey and road map / Riadh Azouzi and Sophie D'Amours -- Introduction to agility in the forest product value chain / Jean-Marc Frayret and Nathalie Perrier -- Tactical planning and decision support systems in the forest-based value creation network / Jean-François Audy, Azadeh Mobtaker, Mustapha Ouhimmou, Alexandra Marques, and Mikael Rönnqvist -- Key aspects of forest woody biomass flows within the Canadian forest value chain / Luc LeBel, Reino Pulkki, Riadh Azouzi, and Denis Cormier -- Overview of wood transportation and operations reserach methods in this area / Bernard Gendron, Reino Pulkki, Marius Posta, and Jean Favreau.

This paper proposes a method to restructure the forest value chain using intermediaries when a wider range of forest values should be managed for several stakeholders. This method leads to the definition of the strategic vision of the intermediary, including its value proposition and its required competencies, assuming that actors in the value chain are prepared to revise their business approach to enable effective collaboration and knowledge sharing. The method is used to support management of public forests in the Province of Quebec, in Eastern Canada. Basically, the intermediary, referred to as the integrator-supplier (IS) in the application case, enables several stakeholders, including the government, the forest industry, regional authorities, recreation organizations, and First Nations, to cnmmunicate, to set compatible goals, and to synchronize their activities. These activities and interactions must all be effectively carried out to maximize the overall benefits of forest management. Three critical issues for successful development of the IS are identified. The results present functional descriptions of seven development scenarios for effective use of intermediation in forest value chains.

Factors such as tariffs, exchange rates, income tax legislations, national factors of production (e.g. natural resources supply, labour and infrastructure), transfer prices, trade barriers and competition (e.g. world wide distribution of capacity and demand) may have an important impact on company performance. In this paper, we discuss the international factors that may have an important impact on the structure of the value creation networks of Canadian pulp and paper companies, and we show how they could be incorporated in a global supply chain optimization model. To do this, we use a simplified production-distribution network structure in order to emphasize the role of international factors without complicating the analysis. The global network considered is composed of four echelons: fiber and pulp suppliers, pulp and paper mills, distribution centers and demand zones. We provide some modeling elements for the construction of a global optimization model through the synthesis of the existing literature on international network design. We conclude with a discussion of modeling extensions required to obtain network optimization models adequate for decision support in the pulp and paper industry.

This chapter proposes a modeling methodology for designing reverse logistics networks. The model aims at determining the location and missions of sites for the recovery of unused products from ultimate consumers, valorization or clean disposal of recovered products, redistribution of reusable materials, and attribution of new or reusable (valorized) products. Valorization activities refer to repair, refurbishing, reassembling, product disassembly for reusable material recovery (cannibalization), and recycling. The proportion of recovered product volumes to orient to valorization and clean disposal activities is not known a priori but is determined according to demand and return volumes, site capacities, and the general anticipated state of recovered product volumes. This model may be used to evaluate the impact of reintegrating valorized products (finished products and spare parts) into current supply chains initially designed only for distribution and maintenance of new products. The chapter discusses key parameters such as the localization and estimation of potential returns and demands for new and reusable (valorized) products, as well as the probability that a returned product be in a specific state, which could lead to one or many processing alternatives (repair, disassembly, clean disposal, etc.). This mathematical model is inspired by the recent healthcare allocation and valorization of the wheelchair policy of the Province of Quebec (Canada), governed and managed by a governmental agency.

The classic wood supply optimisation model maximises even-flow harvest levels, and implicitly assumes infinite fibre demand. In many jurisdictions, this modelling assumption is a poor fit for actual fibre consumption, which is often a species-unbalanced subset of total fibre allocation. Failure to anticipate this bias in volume and species mix of industrial wood fibre consumption has been linked to increased risk of wood supply failure. In particular, we examine the distributed wood supply planning problem, which is a variant of the general wood supply planning problem where the roles of forest owner and fibre consumer are played by independent agents (e.g. wood supply planning on public forest land in Canada, where government stewards control wood supply and forest products industry firms consume the fibre). We use agency theory to describe the source of antagonism between public forest land owners (the principal) and industrial fibre consumers (the agent). We show that the distributed wood supply planning problem can be modelled more accurately using a bilevel formulation, and present an extension of the classic wood supply optimisation model which explicitly anticipates industrial fibre consumption behaviour. The general case of the bilevel wood supply optimisation problem is NP-hard, non-linear, and non-convex-it is difficult to solve to global optimality. By imposing certain restrictions on agent network topology, we show that the general case can be decomposed into convex sub-problems. We present a solution methodology that can solve this special case to global optimality, and compare output and solution times of classic and bilevel model formulations using a computational experiment on a realistic dataset. Experimental results show that solution time for the bilevel problem is comparable to solution time for the classic single-level problem, and that the bilevel formulation can mitigate risk of wood supply failure.

In the province of Québec, the government provides 25% of the volume of timber that is annually cut in crown forests through sealed-bid one-winner auctions. It was noted that many offers are made for some areas but few or none are made for many other areas. As such, a significant number of the timber volumes remains unsold. However, the combination of areas to form bundles can provide economy of scale that is not seen otherwise. We highlight some issues regarding the current allocation system and we analyse the effectiveness of different bundling systems in maximizing government revenues and enhancing bidders' competitiveness. We use actual forest data to evaluate different rules and strategies for the creation and allocation of partial and full bundles. Our results suggest that the use of the option of bundling forests areas makes the auction process more beneficial to the majority of stakeholders: Government revenues are increased; the bidding companies are more likely to obtain the desired volumes and pay less for harvesting and equipment relocation; and greenhouse gas emissions are reduced.