For sawmills that cut a wide range of products to order, which is typical of most sawmills outside of North America, getting the right product to the right customer in a timely manner is critical. Determining which logs to process, with which sawing patterns, is difficult. Add to this the need to consider different log purchase options, market opportunities, and production constraints, and it becomes obvious that making truly optimum operating decisions with conventional planning methods is impossible.
The SAWSIM®-LP linear programming optimization system was developed to help sawmilling operations determine "sawing pattern recipes" - the optimum mix of sawing patterns to convert a known input log mix to a specified production mix. In addition to assisting with these shorter term production planning decisions, the system can also be used to evaluate longer term marketing and log procurement questions, such as:
- At what price is a new product opportunity profitable for us?
- What price premium should we pay for "premium" log diameter/length classes?
Some of the key benefits from implementing a SAWSIM®-LP optimization model include:
- Reduced time frame required to develop daily/weekly/monthly production schedules, and increased confidence that the sawing pattern recipe is the optimum one.
- Improved response time to changes in customer requirements and increased flexibility in responding to emerging market opportunities.
- Build and maintain a log yard inventory of sawlogs by length and diameter class that represent the highest potential for value recovery.
- Move towards a more "customer orientated approach to manufacturing" which should increased customer loyalty and reduce inventory and production conflicts.
- Optimize mill bucking (if applicable) to more closely reflect the distribution of blocks by length and small-end-diameter as specified by the Sawlog Report and Sawn Report.
- Improved integration of log purchasing decisions, milling operation(s), and market conditions.
- Improved purchasing and bargaining power attributable to increased knowledge of the value of logs by diameter class and length.
Please click here to download a SAWSIM-LP brochure