LINEAR PROGRAMMING ANSWERS

TASK 6
Chapter 9
Writted for
Manajemen Hutan Lanjutan’s Course

LECTURER :
Dr.Ir. Bintang Charles, MS

BY :
Gamin
E161090041

MAJOR OF FOREST MANAGEMENT SCIENCE

POST GRADUATE PROGRAMME
BOGOR AGRICULTURE UNIVERSITY
DESEMBER, 2010

1
Page 175 Boungiorno’s Book

No.9.4

Case :
Figure 9.3 Spreadsheet to maximize land expectation value with a 10-year cutting cycle

Question :
a) Set up your own spreadsheet model to maximize the land expectation value of uneven-
aged forest stand like the one shown in Figure 9.3. Using the same data, verify that your
result are the same as in Figure 9.3.
b) Modify this spreadsheet to reflect a 15 year cutting cycle by:
i. Adding formulas to grow the stand from time t+2 to time t+3
ii. Setting the harvest at time t+2 at 0
iii. Changing the cutting cycle in the formula of forest value
iv. Changing the Solver parameters to reflect the steady state between times t and t+3.
c) Compare the best harvest, growing stock, forest value, stock value, and land expectation
value for cutting cycles of 5 years (Figure 9.1), 10 years (Figure 9.3), and 15 years, other
things being equal. Considering only these three options, what is the economic cutting
cycle?
d) Recaluculate the land expectation value for cutting cycles of 5, 10, and 15 years,
assuming a fixed cost of $200/ha. Considering only these three options, what is the
economic cutting cycle?

1
Answer :
a) My own spreadsheet model

The result same as Figure 9.3

b) Modified spreadsheet by 15 year cutting cycle

i.Adding formulas to grow the stand from time t+2 to time t+3
ii.Setting the harvest at time t+2 at 0
iii.Changing the cutting cycle in the formula of forest value
iv.Changing the Solver parameters to reflect the steady state between times t and t+3.

2
c) Comparison :
Cutting Cylce
No. Criteria
5 years 10 years 15 years
1 Harvest value 436 793 1088
2 Forest value 2014 2054 2096
3 Stock value 845 1173 1442
4 LEV 1169 881 653
Among three cutting cycles, the 5 years is the economic cutting cycle

d) LEV for cutting cycle 5, 10, and 15 years, by $200/ha of fixed cost
Cutting Cylce
Criteria
5 years 10 years 15 years
LEV (before) 1169 881 653
LEV (fixed cost) 445 563 468
The economic cutting cycle is 10 years with LEV as 563 $/ha the highest than 5 and 15
years cutting cycles.

3
No.9.5.

Case :

Question :
a) Set up your own spreadsheet model to maximize tree diversity in an uneven-aged forest
stand like the one shown in Figure 9.5. Using the same data, verify that your results are
the same as in Figure 9.5 as follow:

b) Add the model a constraint to produce a constant harvest every 5 years worth at least
$400. How does this change the harvest, growing stock, and opportunity cost of
maximizinf tree diversity? (Note : The land expectation value without any consideration
of tree diversity is shown in Figure 9.1) this following figure :

4
 Figure 9.1. Spreadsheet to maximize land expectation value

Answer :
a) My own spreadsheet

The result is the same with Figure 9.5

5
 b) Spreadsheet model with the constraint harvest at least $400 every 5 years

The changing : harvest (54 to 50 trees/ha), growing stock (diversity on all size class), as
follow, the opportunity cost is 1169-905=264$/ha

a. Previous b.Present

Bogor, December 2010

Gamin
E161090041