Publication Details

Integrated least-cost lumber grade-mix solver

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Buehlmann, U.; Buck, R.; Thomas, R.E.

Year Published

2011

Publication

In: Fei, Songlin; Lhotka, John M.; Stringer, Jeffrey W.; Gottschalk, Kurt W.; Miller, Gary W., eds. Proceedings, 17th central hardwood forest conference; 2010 April 5-7; Lexington, KY; Gen. Tech. Rep. NRS-P-78. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station: 83-91.

Abstract

Hardwood lumber costs account for up to 70 percent of the total product costs of U.S. secondary wood products producers. Reducing these costs is difficult and often requires substantial capital investments. However, lumber-purchasing costs can be minimized by buying the least-cost lumber grade-mix that satisfies a company's component needs. Price differentials between National Hardwood Lumber Association lumber quality classes (grades) change based on market pricing and thus a different least-cost lumber grade-mix solution may be obtained at different times. The U.S. Forest Service's ROMI free rough mill simulation package contains a least-cost grade-mix solver that allows hardwood lumber processors to find the least-cost lumber grade mix. This software, however, currently requires calculations performed on a Forest Service server using the SAS statistical package. R, a new open-source statistical software package similar to SAS, allows the least-cost lumber grade-mix solver to run on the users' computer without a connection to a Forest Service server. Use of the program is thus simplified, and company information is kept confidential.

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Citation

Buehlmann, U.; Buck, R.; Thomas, R.E. 2011. Integrated least-cost lumber grade-mix solver. In: Fei, Songlin; Lhotka, John M.; Stringer, Jeffrey W.; Gottschalk, Kurt W.; Miller, Gary W., eds. Proceedings, 17th central hardwood forest conference; 2010 April 5-7; Lexington, KY; Gen. Tech. Rep. NRS-P-78. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station: 83-91.

Last updated on: June 14, 2011