A goal programming model for the optimization of log logistics considering sorting decisions and social objective

Abstract

Log logistics include sorting, processing, and transporting of logs from their place of harvest to demand locations. These activities account for a significant portion of the total log procurement costs; therefore, attempts were made in previous studies to optimize some aspects of log logistics. However, operational details, such as sorting decisions, truck compatibility requirements, and social objectives, are often disregarded in the optimization literature. Incorporating these details into the model makes the results more realistic and applicable. To address these gaps, a bi-objective mixed-integer programming model is developed in this paper to optimize log logistics. The first objective is to minimize total logistics costs, and the second objective is to provide a balanced workload for trucking contractors. The bi-objective model is solved using the goal programming approach. The model is applied to log logistics of a large Canadian forest company, where trucking contractors use heterogeneous fleet of trucks to carry various log sorts from cutblocks to sort yards for sorting. The planning horizon is 4 weeks with daily decisions. The goal programming model generates balanced workloads for the contractors with less than 0.4% increase in total costs compared to the single objective model where only the total cost is minimized.