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Value Chain Optimization in Timber Supply Chain: Case Study in Gangwon-do

  • Kang, Byongrho (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University) ;
  • Kim, Hyoungtae (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University) ;
  • Jang, Jaeyoung (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University) ;
  • Woo, Heesung (ARC Centre for Forest Value, Discipline of ICT, School of Technology, Environments and Design, University of Tasmania) ;
  • Woo, Jongchoon (Department of Forest Management, College of Forest and Environmental Sciences, Kangwon National University)
  • Received : 2018.08.09
  • Accepted : 2018.08.22
  • Published : 2018.08.31

Abstract

This study investigates to identify the impact factors of timber production cost on the relationship between production cost components and revenues generated by evaluating the entire timber supply chain. In this research, selected 13 logging zones as target areas and classified 14 forest production cost factors, six groups. Additionally, established 13 externalenvironmental factors with related stakeholders and forestry experts. And the BCR (Benefit Cost Ratio) method was then used to analyze the economics of each zone. Filled up a checklist and rated using 5 point scale for each target region, and extracted major cost factors for the production economy of the item. The analysis of major cost factors in the timber production revealed that wood grab equipment usage fee was the first ranked and forest trees purchase cost was ranked in the $2^{nd}$Also, the $3^{rd}$ranking was logging expenses, and transport cost, which accounted for 84% of the total cost, was ranked in the $4^{th}$. In addition, the rock land ratio, slope, timber payment (forest trees purchase cost), special timber, ratio of timber, DBH (Diameter at Breast Height), and mixed forest ratio were the factors that most affected the timber supply chain cost.

Keywords

References

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