An economic and system analysis of the automated hardwood lumber processing system (ALPS)

The concept of an automated lumber processing system (ALPS) using lasers for cutting wood parts is briefly reviewed. Economic analysis of the concept using an interactive computer model is described. Results of the analysis in terms of net present value (NPV) and internal rate of return are presented under a range of assumptions regarding lumber mix, input costs, lumber yield, and factors that affect the speed of laser cutting. Results are generally favorable with expected NPVs in the range of $200,000 to $600,000 over a 5-year period with systems processing about 900,000 board feet per year and requiring $350,000 in capital investment. Further analysis explores a number of issues that affect the design of improved automated hardwood lumber processing systems. Directions for further development of the ALPS concept are suggested.

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