Simulation-Based Cost Analysis of Industrial Supply of Chips from Logging Residues and Small-Diameter Trees

Raul Fernandez-Lacruz,Dan Bergström,Anders Eriksson

doi:10.3390/f11010001

Abstract

Research Highlights: The use of terminals can increase supply costs by 5–11% (when compared to direct supply), but terminals help secure supply during peak demand and cope with operational problems in the supply fleet in cases where direct supply chains would be unable to meet demand on time. Background and Objectives: This work analyses the supply cost of chipped logging residues and small-diameter trees, from chipping at roadside storages to delivery to the end-user. Factors considered include demand curves (based on the requirements of a theoretical combined heat and power plant or biorefinery); demand volume; and mode of supply (direct or combined via terminal). The impact of longer trucking distances from the sites, and supply integration between forest and other land (varying relocation distances) was also assessed. Materials and Methods: The operational environment and work of a theoretical chip supplier in northern Sweden were modelled and simulated in ExtendSim®. Results: The mean supply cost of chips was 9% higher on average for combined chains than for direct chains. Given a high demand, 8% of the annual demand could not be delivered on time without using a terminal. High supply integration of forest and other land reduced supply costs by 2%. Contractors’ annual workloads were evened out by direct supply to the biorefinery (which has a relatively steady demand) or supply via-terminal independently of the end-user. Keeping distinct chips from different sites (implying that trucks were not always fully loaded) instead of mixing chips from different sites until the trucks were fully loaded increased supply costs by 12%. Conclusions: Terminals increase supply costs, but can enable demand to be met on time when direct supply chains alone might fail. Integrated supply planning could reduce supply costs by increasing the utilization of residual biomass from other land.

Highlights

Forests play a central role in the growing bioeconomy and climate change mitigation, providing renewable materials, energy and ecosystem services [1,2,3]
The simulations revealed that the mean supply cost of chips (Table 7) was 9% higher on average
The analysis showed that mean supply costs felled by 2% upon increasing the integration of chip supply from forests and other land

Summary

Introduction

Forests play a central role in the growing bioeconomy and climate change mitigation, providing renewable materials, energy and ecosystem services [1,2,3]. Large quantities of residual biomass could potentially be harvested sustainably in Sweden [6,7,8,9,10]. Notable sources of such biomass include logging residues (LR; tops and branches) originating primarily from clear-fellings and small-diameter trees (ST). The supply of residual biomass from forest land can be integrated with that from other land, as shown by [11]. In Sweden, bulky residual biomass is often comminuted at forest roadsides with mobile machines [12] such as forwarder-mounted chippers and chipper-trucks. The cost-effectiveness of this option is limited by the inefficiency of road transport of bulky assortments (stumps, LR and undelimbed ST)

Objectives

Methods

Results

Discussion

Conclusion