Wood inventory management: a case study of policy formulation
University of New Brunswick
The stabilization of wood cost increases is essential to maintain the viability of Canadian forest industries. Development of sound wood inventory policies is one step which may be taken to help attain this end. Formulation of such policies involves the determination of where and what inventory levels should be carried, and of how desired inventory changes can be brought about. A case study of the wood procurement system of Nova Scotia Forest Industries (NSF!) has been carried out using system simulation as an aid in wood inventory management. The methodology used in this approach has been outlined to acquaint forest industry managers with the use and capabilities of this managerial tool. The specific simulation results of the case study reveal that NSF! is probably carrying an unnecessarily large wood inventory, and that use of an intermediate storage site will not lower wood inventory costs.