The development of a timber allocation model using data envelopment analysis

Abstract

A timber allocation model using data envelopment analysis (DEA) was developed to test the capability of DEA to assist with multicriteria timber allocation decisions. The resulting DEA Timber Allocation model is able to allocate forest stands, referred to as stewardship units, to different forest products companies without the need for weighing or prioritizing the allocation criteria. The allocation procedure was demonstrated in a case considering two allocation criteria: profit and employment. The allocation generated by the model was compared with random, profit-based, and employment-based allocations. The results showed that the model was capable of producing practical solutions and balancing the two allocation criteria. However, adding other allocation criteria was complicated by procedural concerns. Despite its current limitations, the model opens the door to future applications of DEA in forest resource allocation problems. © 2005 NRC.