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1:?Write a summary 5- 7 sentences of the PALCO company.?Include both the financial benefits and non-financial benefits. BE SPECIFIC.
The?Pacific Lumber Company (PALCO)?is a large timber-holding company with headquarters in Scotia, California. The company has over 200,000 acres of highly productive forest lands that support five mills located in Humboldt County in northern California. The lands include some of the most spectacular redwood groves in the world that have been given or sold at low cost to be preserved as parks.?PALCO?manages the remaining lands intensively for sustained timber production, subject to strong forest practice laws. Since?PALCO?s forests are home to many species of wildlife, including endangered species such as spotted owls and marbled murrelets, the provisions of the federal Endangered Species Act also need to be carefully observed.
To obtain a sustained yield plan for the entire land-holding,?PALCO?management contracted with a team of management science consultants to develop a 120-year, 12-period, long-term forest ecosystem management plan. The management science team performed this task by formulating and applying a linear programming model to optimize the company?s overall timberland operations and profitability after satisfying the various constraints. The model was a huge one with approximately 8,500 functional constraints and 353,000 decision variables.
A major challenge in applying the linear programming model was the many uncertainties in estimating what the parameters of the model should be. The major factors causing these uncertainties were the continuing fluctuations in market supply and demand, logging costs, and environmental regulations. Therefore, the management science team made extensive use of?detailed sensitivity analysis. The resulting sustained yield plan?increased the company?s present net worth by over?
1. The PALCO Company has earned significant financial as well as non
-financial benefits through a sustained yield plan. The plan was
based on the formulation and application of a linear...
Paper#9256062 | Written in 27-Jul-2016Price : $16