Scenario-Based Strategic Supply Chain Design and Analysis for the Forest Biorefinery
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Supply chain (SC) design involves decisions for the long term, e.g. number, location and capacity of different SC nodes, production rates, flow of material between SC nodes, as well as determining suppliers, markets and partners. The forest biorefinery (FBR) is emerging as a new possibility for improving forestry company business models, however introduces significant technological, economic and financial challenges - which can be systematically addressed in strategic SC design. This paper presents a scenario-based approach to strategic SC design for the FBR, designing the SC based on the impacts of the design on tactical-operational SC activities. Two kinds of scenarios are used; market scenarios representing market volatility and SC network scenarios (alternatives) representing different biorefinery options/strategies. The SC analysis evaluates SC alternatives for the case of different market scenario. 2011 Elsevier B.V.