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Log Profitability Analysis
- The objective of log profitability analysis is to determine the value of the products, less the conversion cost, from one or more loads of logs that has been actually delivered to a mill and scaled. The analysis may be applied to a single load, or to a group of loads from, for instance, a single timber sale, cutting permit or open market supplier.
- The purpose is to compare the profitability of loads that have been purchased or obtained from different sources, and to learn from experience. Where log profitability analysis has been used, this experience has been used with great effect in negotiations with suppliers.
- The procedure is similar to the one used for Timber Evaluation described above, except that stick-scale data for loads of logs is used instead of cruise data for stands of timber.
- The scale data for each load is added to a database, if one does not exist already, and there is a procedure to combine data for multiple loads, from a single timber supply, vendor or contractor, for instance.
- A summary report showing the profit or loss for each load or group of loads is produced, or detailed analyses, as required, to show the reasons for the variations in profitability between supplies or loads.
- Please click here for an example of Log-Profitability program output.
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