In the push for clean and renewable fuels, timber derived biomass is a promising frontier for biofuel production in the United States. This thesis approaches the established timberlands biofuel implementation problem with three different mathematical programming studies, each testing feasibility and sustainability in different economic and supply related situations. In the first study, a competitive game theory approach was utilized to provide new insights into the behavior within a timberlands supply chain. We utilized Stackelberg game theory modeled with bilevel programming to represent the competing harvesting and manufacturing sectors. In the second study, the initial bilevel model was utilized in a larger two stage multiperiod model with parameter uncertainty. In this more realistic model, the first stage contained logistical decisions around biorefinery investments, such as location and capacity, while the second stage was composed of multiple discrete bilevel scenarios representing potential situations in the timberlands system. The final study focused on long term land management strategies for the timberlands supply chain. Introduction of a new biorefinery investment meant that management strategies must be altered to ensure consistent material flows to manufacturers as well as sustain the new production facility. A modified cyclic scheduling formulation was used to model a timberlands system and its planting and harvesting schedule to accommodate a new biorefinery. This cyclic model added an initial startup period to initiate biofuel production and provide time to adapt land management. The overall contribution of these studies was to analyze a biorefinery's impact on the established behavior in a timberlands supply chain. In particular, the goals of these models were to develop introductory decision making tools for timberlands supply chain managers.

The North American forest industry has long been an important part of North America’s economy. The industry has traditionally been the only industrial demand on timberland creating a long established balance between the supply (timberland) and the demand (manufacturing). Recently the forest industry has been troubled due to the collapse of the solid wood products largest market, housing, and a global recession. These troubled times have lead many operation in the industry to curtail operations. Since the industry curtailed, high oil prices and increasing environmental concern have advocated the investment in renewable energy sources. As a renewable energy source, biomass holds great potential for satisfying a portion of our continental energy demands. This increased demand for timberland products could be very profitable to the timberland owners but also holds many concerns to the extent of additional supply that can be harvested from our timberlands. Further complicating the balance of supply and demand are the large global and domestic effects that are reducing the total amount of timberland and increasing the demand for the remaining timberlands. The supply and demand changes have the potential to make the forest industry evermore important part of the North American economy but care must be taken to not over extend our resources.