ADM 3346 Lecture Notes - Lecture 15: Sawmill

• School: University of Ottawa
• Department: Administration
• Course: ADM 3346
• Professor: Tiemei L I

Document Summary

These products are the result of a joint sawmill process that involves removal of bark from the logs, cutting the logs into a workable size, and then cutting the individual products from the logs. The joint process results in the following costs of products for a typical month: Product yields and average sales values on a per-unit basis from the joint process are as follows: The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by ssi. Also, the posts require no further processing beyond the splitoff point. The decorative pieces must be planed and further sized after emerging from the sawmill. This additional processing costs ,000 per month and normally results in a loss of 10% of the units entering the process. Without this planing and sizing process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages per unit.