3. Harvest Planning Overview
Forest management is a complex endeavor with many decisions,
each having cascading effects
Forest planning software creates optimized harvest plans using
linear programming solutions
Images from Remsoft
4. Lifecycle of a Stand
100’s of stands…
1000’s of choices…
Images from Remsoft
CF
Plant
Fert. A
Herb
1st TH
2nd TH
CF
CF
1st TH
2nd TH CF
CF
CF
Fert. B Herb
1st TH
2nd TH CF
CF
CF
Herb
1st TH
2nd TH CF
CF
CF
1st TH
2nd Th CF
CFPlant SE
Fert. A
Fert. B
Herb
1st TH
CF
2nd TH
CF
CF
Sell
Easement
6. Lifecycle Planning
Images from Remsoft
Scale/Scope
Time (forecast horizon)
Operational
Strategic
Tactical
Detail/Resolution
Schedule
Schedule
Implement
7. Lifecycle Planning
Images from Remsoft
Scale/Scope
Time (forecast horizon)
Operational
Strategic
Tactical
Detail/Resolution
Must allow feasible implementation
Must serve strategic objectives
Must allow feasible
implementation
Must serve tactical objectives
8. Objectives and Constraints
• The linear programming solution optimizes all of the harvest
planning decisions around the objectives and constraints
• Objectives are typically value/revenue driven, but are not
limited to this
• Constraints vary by property and client, but are typically
logistic or legislative limitations
• Logistic constraints such as minimum or maximum annual harvest
quotas, % caps on harvest variation (evenflow)
• Legislative constraints such as conservation laws (maintaining habitat
for species), SMZ, and other special case considerations
10. Quick Conceptual Summary
• Objective – Plan harvest schedules of forest plantations to aid
in decision support. (Perspective is everything)
• What kind of information would we need in order to do this?
• Initial inventory information
• Mill product specifications
• Growth and Yield
• Silvicultural prescriptions
• Product pricing and management costs
11. Inputs
• Inventory Data
• Often in the form of spatial SHP files
• Sometimes linked to a database
• Merchandising Specifications
• Product inventory specs (often local mill specific)
• Silvicultural Costs and Procedural Windows
• Thinning and fertilization ages and costs
21. Quick Conceptual Summary
• Objective – Plan harvest schedules of forest plantations to aid
in decision support. (Perspective is everything)
• What kind of outputs would be interested in?
• Harvest volumes (by species and product class)
• Changes in forest composition over time
• Cashflow analysis
• Financial indicators
• Activity reports
25. Other Important Financial Indicators
• Net Present Value (NPV)/50-Year Discounted Cash Flow (DCF)
• These indicators let us see the financial impact of management
decisions
• How does relaxing or tightening this constraint impact value?
• How does changing an input parameter impact value?
• NPV per acre
• Good figure to self-check with
26. Outputs
Activity Reports
Stand Species Origin Age GIS Area Action Period Year
NCSU-1 LB PY 13 45.4 Thin1 1 2016
NCSU-2 LB PY 19 23.4 THin2 1 2016
NCSU-3 LB PY 26 104.9 CC 1 2016
NCSU-4 LB PY 1 43.2 FertA 1 2016
NCSU-5 LB PY 25 65.1 CC 1 2016
NCSU-6 LB PY 8 51.7 FertB 2 2017
NCSU-7 LB PY 12 56.8 Thin1 2 2017
NCSU-8 LB PY 21 49.3 Thin2 2 2017
NCSU-9 LB PY 27 88.4 CC 2 2017
27. With this data…
• Foresters have long term vision to make better decisions today
• Can perform multiple runs as ‘sensitivity analysis’ for different
management decisions
• Can project revenues and costs into the future for budgeting
• Create valuation and appraisal figures for landsale/acquisition
