Using linear programming to make wood procurement and distribution decisions | Zendy

D. Hubert Burger | Zendy; Mark S. Jamnick | Zendy

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Using linear programming to make wood procurement and distribution decisions

Author(s) -

D. Hubert Burger,

Mark S. Jamnick

Publication year - 1995

Publication title -

the forestry chronicle

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.335

H-Index - 49

eISSN - 1499-9315

pISSN - 0015-7546

DOI - 10.5558/tfc71089-1

Subject(s) - stumpage , procurement , profit (economics) , mill , linear programming , zoning , operations research , computer science , integer programming , unit cost , call for bids , business , environmental economics , operations management , economics , agricultural economics , engineering , microeconomics , civil engineering , marketing , mechanical engineering , algorithm

A user-friendly, computer modeling system was developed to help make decisions for a forest products firm that is organized into profit centres. Interactive data entry provides input to a linear programming model which the system automatically builds and solves. The system considers land ownership, harvest block volumes, mill requirements, stumpage prices, mill product prices, harvest methods and their costs, and shipping distances and costs. In a case study, the system produced a solution with a unit wood cost for the firm's pulpmill that was 5.1% less than the historical cost. Tradeoff analysis showed that the woodlands division has flexibility to increase its profit by up to 25% without exceeding the pulpmill's historical unit wood cost. Key words: harvesting, linear programming, operational planning, profit centre, tradeoff, transportation, wood distribution, wood procurement

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