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Harvest Site Sequencing and Optimal Stopping Rules for Harvesting Multiple Sale Blocks Over Time

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Abstract:

Harvest site sequencing rules are developed that minimize the net present value of harvest costs over time for logging contractors. The sequencing rules explicitly consider situations characterized by declining average logging costs between one site and another over time and consequently will allow for circumstances that have not been well developed in the literature. The site sequencing method is particularly well suited to logging plans that cover many sale blocks over potentially wide geographic areas to be harvested. A numerical example is presented that demonstrates the method's potential for cost savings when average logging costs decline over time and when insufficient time is available to remove all trees that have been designated for harvest. Forest Sci. 28:697-705.

Keywords: Harvest costs; equivalent stationary cost; implicit cost; nonconvex cost; switching cost

Document Type: Journal Article

Affiliations: Associate Professor, Department of Economics, Oregon State University, Corvallis, OR 97331

Publication date: December 1, 1982

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
    Forest Science is published bimonthly in February, April, June, August, October, and December.

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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