A comparative economic analysis of automated and conventional hardwood lumber processing systems

Earlier economic model analyses of an Automated Lumber Processing System (ALPS) are extended by comparing six ALPS system options with three conventional system options. The automated systems look at the potential benefits of using two or more smaller lasers for improved cutting speed. The economic measures evaluated for each system alternative include internal rate of return percent, net present value over 5 years, and payback period. Comparative sensitivity analysis was conducted to assess how the two technologies perform under possible changes in operating conditions. The systems show differing sensitivities to such variables as lumber cost, electric power rates, labor costs, annual operating hours, defective part rates, percentage yield, and interest rates. The results point to a need for careful evaluation of the specific economic climate when deciding on which system to employ.

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