235 iiNiQup; 01 AN XI 1S1S decision

235 iiNiQup; 01 AN XI 1S1S
decisions are vital at many junctures. The man,1:4ci 0: Operation:. Re-search described the contributions of operations IVSC,11.C11 in this regard as follows: Of the many activities that the department engaged in, two of them had the greatest long-term impact on the company. They were the models and concepts that were developed for allocating logs and, second, the concept of using a business model to look at the business as a system whose logistics and marginal economics are an important factor in the commitment of long-term capital. Let me briefly illustrate examples of what was done in these two areas.
The Concept of an Area Model Our raw material business and major minufacturing facilities for primary products are concentrated in geographic locations called areas. The material flow and options in a typical area for raw materials are shown in Exhibit 8-2. This is a typical mathematical programming problem. Basi-cally, our area models are LPs (linear programs) which deal with the following kinds of information: Buy and sell opportunities for stumpage Log availability in the company Buy and sell opportunities for logs Buy and sell opportunities for chips Log transportation costs Product yields Production rate Production capacity Capacity cost When the model is solved, we get suggested plans for raw material sources, raw material disposal, production capacity plans, and product-line plans for the sawmills, plywood mills, and wood rooms (chips). The log allocation models were used by the business, al-though under great protest. The biggest problems were data in-accuracy and the handling of incredibly large volumes of infor-mation as we attempted to use these models for practical decision making. During our next phase of development we corrected these problems and today there is in the company a specially organized staff called the Log Allocation Analysis Croup which monitors the data, operates the LPs, and analyzes the actual re-sults against plans for log and primary product flows. This return-to-log (RTL) system helps us allocate 5.100 million worth of raw material every year.
Business Planning Models The next example I have is the concept of a business model for our Brownboard business. Exhibit 8-3 shows the major compo-

Hasil (Bahasa Indonesia) 1:

235 iiNiQup; 01 1S1S XI keputusan sangat penting di/not banyak. Pria, 1:4ci 0: operasi:. Re-Search digambarkan kontribusi dari operasi IVSC,11.C11 dalam hal ini sebagai berikut: kegiatan yang Departemen terlibat dalam, dua di antaranya memiliki jangka panjang dampak terbesar pada perusahaan. Mereka adalah model dan konsep-konsep yang dikembangkan untuk mengalokasikan log dan, kedua, konsep menggunakan sebuah model bisnis untuk melihat bisnis sebagai sistem logistik yang dan marjinal ekonomi adalah faktor penting dalam komitmen jangka panjang modal. Saya akan secara singkat menggambarkan contoh dari apa yang telah dilakukan pada dua area ini. The Concept of an Area Model Our raw material business and major minufacturing facilities for primary products are concentrated in geographic locations called areas. The material flow and options in a typical area for raw materials are shown in Exhibit 8-2. This is a typical mathematical programming problem. Basi-cally, our area models are LPs (linear programs) which deal with the following kinds of information: Buy and sell opportunities for stumpage Log availability in the company Buy and sell opportunities for logs Buy and sell opportunities for chips Log transportation costs Product yields Production rate Production capacity Capacity cost When the model is solved, we get suggested plans for raw material sources, raw material disposal, production capacity plans, and product-line plans for the sawmills, plywood mills, and wood rooms (chips). The log allocation models were used by the business, al-though under great protest. The biggest problems were data in-accuracy and the handling of incredibly large volumes of infor-mation as we attempted to use these models for practical decision making. During our next phase of development we corrected these problems and today there is in the company a specially organized staff called the Log Allocation Analysis Croup which monitors the data, operates the LPs, and analyzes the actual re-sults against plans for log and primary product flows. This return-to-log (RTL) system helps us allocate 5.100 million worth of raw material every year. Business Planning Models The next example I have is the concept of a business model for our Brownboard business. Exhibit 8-3 shows the major compo-