Optimizing Wood Procurement in Cabinet Manufacturing

An optimum wood procurement policy for cabinet manufacturing was determined during an Auburn University technical assistance project involving a cabinet assembly plant in Alabama. Using a linear programming model of the blank production system, we found that under current conditions this particular mill would be better off economically if its wood raw material input were limited to #2 grade hardwood logs and #2 common green lumber purchased directly from outside suppliers. The input logs should have a small-end diameter of nine to 15 inches. About 88 percent of the lumber used by the manufacturing plant's rough mill or blank processing plant should come from #2 grade logs and the rest from purchased #2 common green lumber. Such a policy is expected to yield about 32 percent savings in wood raw material costs.