Decision Making in Wood Supply Chain Operations Using Simulation-Based Many-Objective Optimization for Enhancing Delivery Performance and Robustness

Wood supply chains are complex, involving many stakeholders, intricate processes, and logistical challenges to ensure the timely and accurate delivery of wood products to customers. Weather-related variations in forest road accessibility further complicate operations. This paper explores the challenges faced by forest managers in targeting many delivery requirements—four or more. To address this, simulation-based optimization, using NSGA-III, a many-objective optimization algorithm, is proposed to simultaneously optimize often conflicting objectives primarily by minimizing delivery lead time, delivery deviations in backlogs, and delivery variation. NSGA-III enables the exploration of a diverse set of Pareto-optimal solutions that show trade-offs across a flexible set of four, or more, delivery objectives. A Discrete Event Simulation model is integrated to evaluate objectives in a complex wood supply chain. The implementation of NSGA-III within the framework allows forestry decision-makers to navigate between different harvest schedules and evaluate how they target a set of preference-based delivery objectives. The simulation can also provide detailed insights into how a specific harvest schedule affects the supply chain when post-processing possible solutions, facilitating decision making. This study shows that NSGA-III could substitute NSGA-II to optimize the wood supply chain for more than three objective functions.