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Scheduling Douglas-Fir Reforestation Investments: A Comparison of Methods

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Three alternative methods of scheduling Douglas-fir reforestation projects on the Bureau of Land Management's Roseburg District in western Oregon are described and compared. The methods are: (1) linear programming; (2) capital budgeting; and (3) certain rules-of-thumb based on professional experience and judgment. Using 1966 data, each method was employed to plan an optimal reforestation program. Net present values of the resulting programs were then compared. Linear programming provided a superior solution to the planning problem studied: Value of the linear program was 12.0 percent greater than the program obtained with capital budgeting criteria, and 16.9 percent greater than the program based on rules-of-thumb. The results demonstrate the importance of selecting the correct economic model in making investment decisions and illustrate the advantages of linear programming in analyzing complex problems involving multiple resource constraints.

Document Type: Journal Article

Affiliations: Formerly graduate student and research assistant at the University of California

Publication date: December 1, 1968

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