End-to-End Supply Chain Planning in the Paper Industry Via Column Generation and Benders Decomposition
Changkun Guan, Amira Hijazi, Pascal Van Hentenryck
arXiv preprint arXiv:2607.16618Supply chain planning problems have multiple interconnected layers of decision-making. In paper manufacturing, these layers include production scheduling, trimming decisions, vehicle loading, multi-period demand fulfillment, and inventory management. To solve the fully integrated problem at industrial scale, we exploit the structure of the problem and use a hybrid method combining column generation and dynamic programming for the supply-side with Benders decomposition for downstream fulfillement, giving the first exact model that ties all four decisions together at industrial scale. On real data it cuts costs by 24% and shrinks solve times from over five hours to under one hour compared to the prior approach.