Cameron Opti-Rip 415A-M1 - Page 45

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OPERATION
OPERATION
#415-R1
8-15-18 - JR
used in this nancial analysis portion of the
report.
Lumber Value $/MBF: The running
average value of all the boards within the
batch that was optimized. It is based on
the product values of the processed boards
times the average yield of the lumber.
Product Value $/MBF: The average
processed value of the ripped stock based
on the weighted values of each rip width
of all the combinations chosen during
production.
Product Cost: The net cost of the lumber
after adjusting for its yield to produce the
ripped stock.
Value Increase: The difference between
the product value and product cost which
represents the gross prot (or loss) of this
production run. This gain (or loss) does
not include any overhead or processing
costs. Therefore, these expenses must be
subtracted from this gure to get an accurate
representation of the nancial results of this
production run.
The Opti-Rip Production Report is invaluable
for maintaining inventory control, comparing
the utilization of lumber from different
supplies, examining plant efciency and
keeping product pricing consistent with the
changing costs of production.
As the report summarizes the frequency
(quantity) of the rip widths produced, it can
be used to lend insight on more effective
saw arbor congurations for the various
suppliers of lumber.