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Economic feasibility of producing inside-out beams from small-diameter logsAuthor(s): David W. Patterson; Richard A. Kluender; James E. Granskog
Source: Forest Products Journal Vol. 52, No. 1 Janurary 2002 p. 23-26
Publication Series: Miscellaneous Publication
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DescriptionPrevious work has shown that it is technically feasible to produce inside-out (ISO) beams by taking small-diameter (5 to 7 in.) logs, slabbing four sides, quartering the cant, and turning the quarters inside out and gluing them together. After drying, the beams were found to be straight, with no cracks, and of equal or better mechanical properties than solid sawn beams of the same material. The objectives of this study were to determine if it was economically feasible to produce IS0 beams and if interest rate or daily production level influenced economic feasibility. Present net worth (PNW) with a 10-year planning horizon was used in the analysis. The interest rates were 8, 12,16,20, and 24 percent and the daily production levels were 400,600, and 800 tree-length stems yielding 464,696, and 928 small-diameter logs, respectively. Results indicated that the constraining variable in determining feasibility was production level, although discount rate was also important in determining PNW. The PNW of a 400~stem production level was always negative, while it was always positive for the 600- and 800-stem production levels. The break-even point was indicated to be approximately 550 stems per day for the equipment and production facility used in this study.
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CitationPatterson, David W.; Kluender, Richard A.; Granskog, James E. 2002. Economic feasibility of producing inside-out beams from small-diameter logs. Forest Products Journal Vol. 52, No. 1 Janurary 2002 p. 23-26
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