Optimizing a Timber Harvest

Build

Flow From To Road? Cost Link

0 1 4 0 $9.00 0
76 2 0 1 $0.00 -71
69 3 2 1 $13.00 -78
0 3 6 0 $12.00 0
0 4 5 0 $14.00 0
0 5 2 0 $15.00 0
0 5 8 0 $13.00 0
59 6 3 1 $12.00 -88
0 6 9 0 $13.00 0
0 7 4 0 $15.00 0
0 8 5 0 $13.00 0
18 8 9 1 $12.00 -129
42 9 6 1 $13.00 -105
0 9 8 0 $12.00 0
0 10 11 0 $11.00 0
0 11 8 0 $12.00 0
11 12 9 1 $10.00 -136

Step 1
Put in values for transportation from one location to the other and the area.

Step 2
Add cost of building each section of road in thousands

Step 3
Add decision variables to determine which area is most profitable.
Cells B5:b21 are the flow from one area to another.
Cells E5:E21 will indicate if the road should be build or not.
Cells J5:J17 will show if an area should be harvested or not.

Step 4
Cells G5:G21 will calculate the link

Step 5
In cells L5:L16 is the value of the harvested area times if the area should be harvested. L17 is the sum.

Step 6
Column M is the Net flow using the sumif function.
So, if the sum of D5:D21 is equal to l5, minus is the sumif
of sum of C5:C21 is equal to I5

Step 7
In cell K19 I calculated the road cost using sumproduct. In cell K21 the profit is calculated by finding the
difference between K20 and K19.

Step 8
Next, I used Solver to find a solution. Cell K21 is the objective cell that we want to maximize by changing

cells B5:B21, E5:E21 and J5:J16.

 Supply/De
Area Harvest? Value mand Net Flow
1 0 $15.00 $0.00 0.00
2 1 $7.00 $7.00 7.00
3 1 $10.00 $10.00 10.00
4 0 $12.00 $0.00 0.00
5 0 $8.00 $0.00 0.00
6 1 $17.00 $17.00 17.00
7 0 $14.00 $0.00 0.00
8 1 $18.00 $18.00 18.00
9 1 $13.00 $13.00 13.00
10 0 $12.00 $0.00 0.00
11 0 $10.00 $0.00 0.00
12 1 $11.00 $11.00 11.00
0 -- -- $76.00 76.00

Road cost $60.00

Timber Value $76.00
Profit $16.00

7 is the sum.
by finding the

ze by changing