Sawmills and plywood plants are very sensitive to log mix. Getting the right log, to the right mill, to be processed under the right conversion process at the right time is very important to financial performance in the forest products industry.
Buying the right log is not necessarily the same as buying the “cheapest” log or the log with lower trucking cost. Log quality is important to product mix which in turn is important to profitability. To allocate logs optimally it is necessary to consider many factors including bucking options, conversion options, recovery, processing rates, processing bottlenecks, production costs, and sales realization. Log allocation can be a complex puzzle. Optimization is a structured search tool that seeks out every reasonable solution alternative before determining the most profitable course of action.