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We reviewed 153 peer-reviewed sources to provide identification of modern supply chain management techniques and exploration of supply chain modeling, to offer decision support to managers. Ultimately, the review is intended to assist member-companies of supply chains, mainly producers, improve their current management approaches, by directing them to studies that may be suitable for direct application to their supply chains and value chains for improved efficiency and profitability. We found that information on supply chain management and modeling techniques in general is available. However, few Canadian-based published studies exist regarding a demand-driven modeling approach to value/supply chain management for wood pellet production. Only three papers were found specifically on wood pellet value chain analysis. We propose that more studies should be carried out on the value chain of wood pellet manufacturing, as well as demand-driven management and modeling approaches with improved demand forecasting methods.

Supply chain optimization for biomass-based power plants is an important research area due to greater emphasis on green energy sources. This paper develops and applies two optimization models to analyze the impacts of biomass competition on cost structures and gross margins for four competing biomass-based power plants in northwestern Ontario. Model scenarios are run to study the impacts of changes in parameters relevant to biomass type and processing technology, and prices of inputs and outputs on procurement costs. Cost minimization model shows that per unit procurement costs are directly proportional to the size of the power plants in all scenarios. Profit maximization model, on the other hand, shows that FMUs that are closer to the power plants make higher gross margins. However, the margins significantly increase for FMUs that are close to the power plants potentially offering higher prices. The variations in costs and gross margin structures under various model scenarios are explained by location of depletion cells relative to power plants, availability of each type of biomass in depletion cells, biomass demands, and differential processing costs for two types of biomass. These results can aid decision makers to make improved decisions related to biomass supply chains for bioenergy production.