Virginie Chambost

Integrating product portfolio design and supply chain design for the forest biorefinery

Abstract Supply chain (SC) design involves making strategic long-term decisions for a company, e.g. number, location and capacity of facilities, production rates, flow of material between SC nodes, as well as choosing suppliers and markets. The forest biorefinery is emerging as a promising opportunity for improving the business model of forest product companies; however it introduces significant challenges in terms of mitigating technology, economic and financial risks—each of which must be systematically addressed in the SC design. In this regard, product portfolio definition and technology selection are two important decisions that have rarely been considered in a systematic SC evaluation. This paper presents a methodology, in which product/process portfolio design and SC design are linked in order to build a design decision making framework. According to this methodology, design of “manufacturing flexibility” links product/process portfolio design to SC design, through a margins-based SC operating policy. Techno-economic studies along with scenario generation for price and demand changes representing market volatility are employed in the methodology.

The Role of Supply Chain Analysis in Market-Driven Product Portfolio Selection for the Forest Biorefinery

Abstract The implementation of the forest biorefinery in retrofit to an existing forestry company requires a strategic shift in the core business from a commodity-driven manufacturing-centric culture, to a margins-driven supply chain culture. In order to diversify the set of traditional forest products to include biorefinery products it is critical to define the associated market and competitive strategies as well as new business models. The penetration of existing mature value chains by replacement and/or substitution biorefinery products requires that supply chain strategies be implemented that create and retain value over the longer term, and secure a unique competitive position. As part of the new product portfolio definition, key supply chain criteria must be identified and considered in the value chain assessment. The role of the supply chain in defining the product portfolio definition and in mitigating risks against price volatility is examined in this paper.

Potential Impact on Activated Sludge Treatment from the Implementation of Cellulosic Ethanol Production at a Pulp and Paper Mill

The potential impacts of additional flow and organic loads resulting from the production of cellulosic ethanol on an existing integrated newsprint mill were simulated in this paper. It was found that depending on the ethanol production rate and the existing spare capacity for additional biochemical oxygen demand (BOD), treatment plant modifications may be required. In terms of operating costs, it was found that nutrients use could increase by 50% to 150%, while aeration flow could increase by 5% to 140% depending on the desired level of dissolved oxygen in the aeration basin. Significant increases in polymer use for mixed sludge dewatering could result due to additional biosolids production. Additional capital costs for air blowers could also be necessary unless the mill has existing spare capacity. It was also found that ethanol recovery efficiency and production rate had little impact on BOD removal up to a certain ethanol production level, and that the impact on operating costs decreased with increasing recovery.