Determination of optimal bucking and sawing policies is linked in a common model. The core of this model is a linear program (LP) that selects stem bucking and log sawing policies to maximize profits given an input distribution of raw material. Product output is controlled by price-volume relationships that simulate product demand curves. The model uses a three stage solution process performed iteratively until identical solution bases are obtained. A variation of the Dantzig-Wolfe decomposition principle is used, linking the three models through the use of the Lagrange multipliers from the LP. The procedure is demonstrated for a sample sawmill. The revenue gain from using the policies suggested by the integrated model over those found by the bucking and sawing programs working separately was found to be 26%-36%
