Linear programming a multicomodity distribution system for forest produce

Content Partner: Manaaki Whenua – Landcare Research. This report demonstrates how the linear programming package on the ICL 1904 computer used by the Forest Service can solve the problem of determining a multicomodity distribution system for forest produce. The objective is to either minimise transport costs, or maximise revenue for sales, or merely find a feasible solution. The problem is to decide how much of various types of produce (sawlogs, pulp etc.) should be harvested from which parts of the forest and sent to the various markets subject to the many constraints imposed by supply and demand. This belongs to that class of problems known as Transportation problems. The benefits from using linear programming lie not only in finding an optimal feasible solution, but also in the sensitivity analysis which can be performed on the solution, and also in the ease with which changes can be made to the basic data and the problem solved again. Finally, the discipline of having to determine all the factors and constraints which affect the distribution problem and arrange them in a logical order may be of as much benefit to the forest manager as the solution to the problem.