Using customer-driven information to add value to lumber

• Published in: Forest products journal Vol. 46; no. 10; pp. 41 - 44
• Main Authors: Reeb, J.E. (Oregon State Univ., Corvallis, OR.), Massey, J.G
• Format: Journal Article
• Language: English
• Published: Madison, WI Forest Products Society 01.10.1996
• Subjects: Algorithms; APLICACIONES DEL ORDENADOR; APPLICATION DES ORDINATEURS; Applied sciences; ASERRADO; BOIS DEBITE; Commodities; Comparative studies; Computer based modeling; Customers; Defects; Economic impact; Exact sciences and technology; Feet; Forest products industry; LOGICIEL; Lumber industry; MADERA ELABORADA; PINUS; Polymer industry, paints, wood; Prices; Pricing policies; Product quality; PROGRAMAS DE ORDENADOR; Proprietary; SCIAGE; SIMULACION; SIMULATION; VALEUR AJOUTEE; VALOR ANADIDO; Value added; Wood; Wood. Paper. Non wovens; United States > US; Wood; Computer simulation; Price; Wood cutting; Softwood; Economic study; Added value; Modeling; Lumber
• ISSN: 0015-7473; 2376-9637

Southern pine dimension lumber is sold as a commodity product. Opportunities do arise in the sawmill to move some of this commodity product into a special or proprietary grade to meet customers' special needs and to increase mill revenue. A microcomputer-based, lumber-grade distribution model was developed to allow the sawmill manager to use expected lumber prices and selected grading rule adjustments to assess the economics of producing different grade distributions. Defects in a random sample of lumber were mapped, measured, and entered into a lumber database. The database was used in two simulations, one with Southern Pine Inspection Bureau (SPIB) grading rules only and the other with SPIB grading rules and a user-defined special grading rule. Using a conservative production rate, the sorting of the special grade resulted in additional revenue of $89,100 for the sawmill. In addition, a special need for a customer was met. The results of the two runs demonstrate that the computer model can be used with standard grading rules and a propietary grading rule to provide an accurate and rapid means of projecting lumber volume and value mix between different scenarios. The computer model would be of value to any sawmill with either a relatively stable production process and raw material distribution, or mill management who could update their database of lumber characteristics