Many companies in the forest products industry utilize some form of planning process. The “business planning” tends to fall into two camps: financial planning (budgeting) and log mix/product mix planning. This article focuses on the latter. The only way to truly maximize value from the planning process is to employ linear programming-based “optimization” models. This technology, when implemented properly, can bring millions of additional profit dollars to the bottom line of your company by using existing resources more effectively.
Optimized production planning and scheduling assures that the manufacturing resources are used to their full potential. Optimization systems can provide insights as to where to reduce manufacturing costs and target opportunities to improve efficiencies and reduce costs. Managers looking to improve business processes should not ignore the importance of planning to cost control and profitability.