Optimizing Bucking Decisions in Korean Red Pine: A Dynamic Programming Approach to Timber Profitability

Abstract

Poor bucking decisions in forest stands can result in underestimating the profitability of timber sales. This study focuses on Pinus densiflora, commonly known as a red pine in Korea, which has often been underutilized as pulp and chips, leading to reduced profit margins. This study aimed to improve bucking decisions for red pine by analyzing the potential values in different log types and the profitability of manufacturing lumber products compared to pulp chips. A log sawing simulation model was developed using dynamic programming. This study optimized sawing patterns and estimated net profits for varying log sizes within the lumber market in Korea. The findings reveal that manufacturing lumber products from 3.6 m and 2.7 m logs can yield net profits 861% and 723% higher, respectively, than producing pulp chips from 1.8 m logs. Notably, sawing 3.6 m logs resulted in an average net profit 24% higher than from 2.7 m logs. These results advocate for more strategic bucking decisions based on potential timber sale profits and the end-uses of logs, especially in trees with large diameters at breast height (DBH), which can produce high-quality logs and should be bucked into long sawlogs whenever possible. Additionally, the study emphasizes the importance of practicing timber cruise to appraise the stumpage value of forest stands more accurately, moving beyond mere volume estimation to include tree type and expected volume. By implementing these practices, timber sale profits and the overall value of forest stands in Korea can be significantly enhanced. This approach not only benefits the economic aspect of forestry but also encourages sustainable and efficient resource management.