System 6: A pricing strategy for long blanks

Hugh W. Reynolds; Bruce G. Hansen; Bruce Hansen

doi:10.2737/NE-RP-573

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System 6: A pricing strategy for long blanks

Informally Refereed

Authors:

Hugh W. Reynolds, Bruce G. Hansen, Bruce Hansen

Year:

1986

Type:

Research Paper

Station:

Northern Research Station

DOI:

https://doi.org/10.2737/NE-RP-573

Source:

Res. Pap. NE-573. Broomall, PA: U.S. Department of Agriculture, Forest Service, Northeastern Forest Experiment Station. 14 p.

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Download (PDF 814 KB): https://research.fs.usda.gov/download/treesearch/21723.pdf

Abstract

In System 6, small-diameter, low-grade hardwood timber is used to make blanks in standard sizes. Blanks are made in one thickness and one quality class but in all the standard lengths during each production run. The quantity of blanks per length can be varied, while keeping total yield high, by using proper production control techniques. However, when the percentage of long blanks is increased beyond 15 percent, yields of required blanks will drop-though total yields remain constant-and earnings will be lowered. We describe a procedure that can be used to keep constant or improve earnings when the demand for long blanks exceeds the 15-percent level.

Keywords

low-grade utilization, hardwood dimension

Citation

Reynolds, Hugh W.; Hansen, Bruce G. 1986. System 6: A pricing strategy for long blanks. Res. Pap. NE-573. Broomall, PA: U.S. Department of Agriculture, Forest Service, Northeastern Forest Experiment Station. 14 p.