From a strategic to a tactical forest management plan using a hierarchic optimization approach

The Finnish state forest enterprise, Metsähallitus, defines the regional harvest levels for a 10-year period in a strategic-level natural resources plan. Although this plan defines stand-level harvest schedules for all stands, in practice, it cannot be used, as the harvests need to be clustered in time and in space. It is applied by giving each subregion goals they need to fulfill in a tactical level planning process, and the harvests are manually clustered into predefined groups of adjacent stands (departments). In this study, we developed a hierarchical optimization process making use of departments for clustering the harvests. For each of the departments, 91 different stand-level harvest schedules (plans) were determined using incomes from one period and the forest value at the end as objectives. The department-level plans were then used as alternatives in a region-level goal optimization problem. The resulting hierarchic plan was compared to the stand-level solution of the strategic-level plan which served as a benchmark plan. The hierarchical plan clustered the harvests and achieved the goals set better than the benchmark plan, but the net present income was 3.3% lower. The approach turned out usable, but further developing of the approach is needed to reduce the costs of clustering.