Linking strategic and tactical forestry planning decisions

Abstract

In this paper a two-level model and optimization algorithms areintroduced to assist forestry companies in simultaneously considering strategicinvestment and tactical planning decisions. A procedure to reduce thediscrepancy produced in the aggregation and disaggregation process used to linkthese two-level decisions is also presented. This procedure is based onboth cluster analysis over economic parameters defined on “the standmacro-units to be harvested” and on the information transmittedbottom-up and top-down between the strategic and tactical models. Wealso show a new approach for solving the tactical mixed integer model.