Integration of Production and Supply Chain Strategic Planning for Renewable Resources under Sustainability Considerations: Teakwood Case Study

This paper studies developing country teakwood production and supply chain under sustainability considerations. Although teak is a renewable resource, it requires long time to be harvested again. Furthermore, teak demand tends to increase from time to time. A teak production and supply chain model is developed to find optimal teak production and distribution that maximizes economical aspect, while maintaining renewable resource preservation and social benefit. Whole stand growth model is used to simulate growth of the planted forest. Linear fuzzy Chance Constrained Model (CCM) optimization is deployed to find the solution and implement uncertainty to production capacity, demand, and prices parameters. Simulation and optimization are recursively conducted for every period of time. The result shows that sustainability in teak industry can be achieved after rotation time.