Inventory Planner

Inventory strategy optimization

Maximize profitability with the best inventory strategy

You rely on inventory information to decide when to cut, where to fertilize, what roads to build. But how do you balance the cost of better information with the benefit of increased yield?

You can increase profitability by up to 15% by optimizing your inventory strategy

Inventory Planner takes the guesswork out of cruise planning and economic analysis - making the process more objective and your management more profitable. We help you answer the following questions:

How many plots should I install in this stand?

What size plot should I use for this forest type?

Is paying for remote-sensing cost-effective here?

Different forests, different inventory strategies

As you know, there are many complex factors at play when deciding on an inventory strategy. Your economics can be determined by factors such as:

  • Local market prices
  • Available silvicultural prescriptions
  • Product mixes and growth rates
  • Current inventory
  • Cost of contract labor
  • Cruising efficiency
  • Sampling method
  • Distance between plots

Inventory Planner takes care of calculating the impact of all of these details for you. The first step in the Inventory Planner process is a brief consultation with a SilviaTerra biometrician to establish your input parameters. Our team uses this to work up a complete analysis of the various inventory strategies for your property and their effect on your harvest economics. Our approach is data-driven, and customized for your particular situation.

Example Report
Check out these example Inventory Planner workups:

How it Works

Information Cost vs. Decision Value

We all collect forest inventory information because it helps us improve our decision making. If we had perfect information, we'd be able to create a totally optimal management plan. But perfect information is cost prohibitive, so we statistically sample the forest with a cruise and accept that we'll have imperfect information.

With imperfect information, we make more "mistakes" in our management plan. The more imperfect the data, the more mistakes we make. At some point, spending a dollar less on forest inventory results in losing more than a dollar due to imperfect management. Inventory Planner helps you find that crossover point.

Simulating Inventory Strategies

At SilviaTerra, we spend all day working with inventory data for some of the largest forestry organizations in the world. Our biometricians can help you develop an optimal inventory strategy through our inventory and management simulator. Here's how it works:

  • We start by identifying an FIA plot similar to your forest type
  • We use that plot as a "seed" to generate a virtual forest where we know the location, size, and species of every tree.
  • We now have perfect inventory information and can feed that information to a harvest scheduler to set a benchmark for the most profitable management cycle possible. As an example, there might be a $1 million profit.
  • Now we simulate "cruising" our virtual forest with various sizes of plots and intensities.
  • For each cruise, we'll get an estimated, imperfect inventory which will be a bit off the true inventory. We also get a cruising cost (which cuts into profitability)
  • Because the inventory is imperfect, the management plan that comes out of the harvest scheduler will contain several "mistakes".
  • Because we know what's actually in the virtual forest, we can calculate exactly how much these mistakes will cost you. As an example, you might only make $950,000 of profit with this "several mistakes" management plan. A less intense cruise might result in even more mistakes, leaving you with $900,000 of profit.
  • Because we're able to quantify the economic consequences of each inventory strategy in a mathematically rigorous way, you can clearly see how your inventory decisions directly influence your profitability.

Get Inventory Planner

If you manage more than 5,000 acres, let our team of expert biometricians help you develop an optimal inventory strategy for your unique ownership today. We're looking forward to hearing from you.

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