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About the Two Approaches to Price Differentiation for Sawlogs

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S.V. Ershov, T.I. Zykova

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The method based on linear programming principles for appointment of sawlogs sizes to the various types of equipment for more effective processing, is posed. The equipment is distinguished by the capability and return of sawn timber. The proposed method also allows to define correction indexes to the price of the sawlogs with different diameters. The adjusted price should ensure to take effective managerial decisions for the purchase of the sawlogs with certain size. The two variants of objective function have been considered, and it has been shown that the economic effect using as the objective function provides account of the all factors affecting on the efficiency of sawing. As the initial data for calculating was used: the sawlogs distribution by diameters; the timber return and capability in the sawing logs of the each size group on the each type of equipment, the capital and operating costs for the each type of equipment, the average price of timber. The main conclusions in article: the sawlogs with different diameter represents the different worth by sawing and has different price; the prices of the sawlogs of different size groups, determined as the solution of dual problem, are corresponded to optimum distribution of the sawing logs to types of equipment; the use of such prices will ensure effective managerial decisions.


S.V. Ershov, Candidate of Engineering, Associate Professor T.I. Zykova, Master’s Student
Northern (Arctic) Federal University named after M.V. Lomonosov
Naberezhnaya Severnoy Dviny, 17, Arkhangelsk, 163002, Russia


Northern (Arctic) Federal University named after M.V. Lomonosov


capability, return of timber, the objective function, operating costs, capital costs, economic effect, price.


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