A Simulation Framework for the Evaluation of Production Planning and Order Management Strategies in the Sawmilling Industry.

Summary Raw material heterogeneity, complex transformation processes, and divergent product flowsmake sawmilling operationsdifficult to manage. Most north-American lumber sawmillsapply a make-to-stock production strategy, some accepting/refusing orders according to available-to-promise (ATP) quantities, while a few uses more advanced approaches. This article introduces a simulation framework allowing comparing and evaluatingdifferentproduction planning strategies as well as order management strategies. A basic ERP system is also integrated into the framework (inventory management, lumber production planning algorithms, ATP and CTP calculation, etc). The user can configure the production planning and order management process, and evaluate how they will perform in various market contexts using the discrete event simulation model.