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Model for cost calculation and sensitivity analysis of forest operations

dc.contributor.authorKalēja, S.
dc.contributor.authorLazdiņš, A.
dc.contributor.authorZimelis, A.
dc.contributor.authorSpalva, G.
dc.description.abstractForest operations include logging, off-road and road transport of round wood, harvesting residues and wood chips, soil scarification and pre-commercial thinning, as well as other less conventional operations like stump extraction and undergrowth removal before felling. The process of harvesting can involve different interfering phases with specific productivity parameters, which will have impact on the productivity of harvesting and delivery, as well on the prime cost of logs and forest biofuel. Detailed prime cost calculation allows to assess the impact of various factors on costs of the products, as well as to define threshold values for certain parameters affecting the productivity. The base model elaborated within the COST action FP0902 is complemented with standard economic methods and adopted to the harvesting process or any other forest or farming operation including systems consisting from several machines. The model is designed in a way, which is simple in use, easily extensible with additional parameters and machines and with possibility to change individual input data. The cost calculation section of the model consists from investments (base machines and equipment), labor costs (salaries, social charges, insurance and other payments) and operational costs (fuel, lubricants, maintenance, repair and other consumables). The average hourly cost is calculated according to forecast of number of working hours per year. Engine hours are used in calculation to synchronize input data with service statistics from dealers’ centers. The parameters of the forest stands affecting productivity, like diameter or volume of an average extracted tree, number of relocations per year, average off-road transport distance, driving speed and other parameters are defined in the calculation. Productivity and load size can be set as fixed values or equations (in case if the sensitivity analysis should be done). The model calculates the hourly cost (productive, engine and proposed working hours) and the unit price for each phase of the work process. The sensitivity analysis demonstrates impact of various factors, like number of working hours per year, dimensions of the average extracted tree, forwarding and road transport distance, fuel price and fuel consumption as a default parameters or any other indicator, which can be added to the sensitivity analysis. The model is validated against the actual harvesting contracts and hourly cost of rental machines. Default parameters in the calculation are summaries of information provided by contractors or service companies.eng
dc.identifier.publicationAgronomy Research, 2018, vol. 16, no. 5, pp. 2068-2078eng
dc.rights.holderCopyright 2009 by Estonian University of Life Sciences, Latvia University of Agriculture, Aleksandras Stulginskis University, Lithuanian Research Centre for Agriculture and Forestry. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, incl. photocopying, electronic recording, or otherwise without the prior written permission from the Estonian University of Life Sciences, Latvia University of Agriculture, Aleksandras Stulginskis University, Lithuanian Research Centre for Agriculture and Forestry
dc.subjectcost calculationeng
dc.subjectforest operationseng
dc.titleModel for cost calculation and sensitivity analysis of forest operationseng


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