A new integrated cooperative game and optimization model for the allocation of forest resources

We propose an integrated approach combining a cooperative game model and a multi-objective optimization model to determine the quantities of forest resources to allocate to several mills. The new mechanism developed in this study is applied to a regional case study in the province of Quebec (Canada), where public-owned forest resources should be allocated by the government to multiple competing mills. Collaboration between mills is considered in the upstream supply chain (i.e., harvesting, road construction/upgrading, and transportation operations) as well as their individual sustainability performances (economic, environmental and social aspects) in the allocation process. Moreover, this approach highlights the conditions under which the allocation ensures the stability of the configuration of the coalitions through a coalitional stability analysis. The proposed approach attempts to capture collaboration benefits and mills’ individual performances in the allocation process, while promoting equity among them. The coalitions of the case study overlap and thus, the concept of coalition configuration value is used to measure the marginal contribution of each mill to the cost savings. In particular, a methodology is proposed for the estimation of this value based on real data. The results of this study demonstrate that the allocation honors the efforts made by mills, both individually and collectively. In addition, it stimulates them towards a sustainable resource management relationship.