Multiple Period Combined Optimization Approach to Forest Production Planning

Recent efforts on the development of production planning systems for sawmills have focused on combined optimization type solutions in a steady-state market environment. This paper describes a linear programming-based multiple period production planning system which responds to expected changes in product value or market demand by changing policies with regard to sawing patterns and log consumption. Log and lumber inventories tie production periods together. The model was tested on a large log mill in British Columbia producing export products. It is shown that the model responds to market changes using sawing pattern selection and altered log consumption.