Forest-to-Market Fibre Allocation Optimization (ForestPlan)

Choosing the best scenario for the right log for the right mill at the right time

ForestPlan uses log allocation, harvesting, transportation, production, and sales data to determine the cost of fibre delivered to all possible destinations. It incorporates tree processing and bucking specifications into harvesting. It looks at all available modes of transportation and selects the solution for each source of supply.

It is based on mathematical models designed to maximize profits by using the data and constraints input by the user. It uses profit margins and has the potential to increase those margins by 15% (for the forest industry). It assesses the worst- and best-case scenarios to find the optimum solution and generates a value-chain optimization plan. The plan identifies which cutblocks to harvest, which log sorts to produce at each cutblock, and the destination. Once an optimal plan is found, users can run additional “what-if” scenarios for a change in variables (sensitivity analysis): more manufacturing capacity, less demand for certain products, changing market prices, etc.

Your Benefits

Potential to increase profit margins by 15%:
  • Generates a detailed overall picture;
  • Assesses maximum profit versus minimum delivery cost;
  • Looks at all possible supply combinations and determines the destination combination that will yield a maximum profit margin;
  • Determines the optimal supply for all mills in a wide territory;
  • Assesses the impact of cutblock sorting and not harvesting a block;
  • Justifies investments in sawmill upgrades, production changes or the addition of shifts; and
  • Determines the optimal transport system (routes and modes) and the potential use of marshalling yards or transhipment centres.

Learn more about FPInnovations additional membership advantages