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Merchandize Phase

Profit driven product pathways.

Jul 16, 2014

The Merchandize phase simulates the potential product pathways for each block to calculate its net value for various market conditions. The tree and log lists that make up the fibre index are simulated into product mixes based on current and forecasted market conditions. This process creates a Product Recovery Matrix for each harvest block or operating area. The Merchandize phase takes into account harvesting, transport, and conversion costs to determine a block’s net profitability. The Merchandize phase helps us understand the potential value generated from each section of the forest warehouse. The merchandizing options can also be modified to run what-if scenarios to find more profitable ways of processing the available fibre. The Merchandize phase equips planners with the ability to match the Product Recovery Matrix to specific production targets at the mill(s) or simply to maximize net profitability of the block.



Source: http://sumacforest.com/fidex/the-process/merchandize-phase/