The purpose of this research was to quantify the impact of the log variables: length, grade, and scaling diameter, on the cost of producing hardwood lumber, using the activity-based costing technique. The usual technique of calculating hardwood lumber product costs is based upon traditional cost accounting, where manufacturing costs are allocated to the products based upon the volume of each product that is produced. With the traditional cost accounting procedure, the variation in the resources used to process the logs is not taken into consideration. As a result, when the cost to manufacture the products is subtracted from the market value of the products, the resulting profit levels of the products may not be truly representative of the actual resources consumed in manufacturing the product. Using discrete-event simulation, two hardwood sawmills were modeled and a series of experiments were conducted which would not have been feasible to conduct on the mill floors. Results from the simulation experiments illustrated that the activity-based and traditional cost accounting techniques allocated different amounts of manufacturing costs to the products. The largest difference between the two cost accounting techniques was found to be the amount of raw material costs allocated to the products. For one of the sawmills modeled, log grade was identified as having the greatest influence on determining product costs and total manufacturing costs. Results from the model of the second sawmill however demonstrated that log diameter had a greater impact on determining product costs and total manufacturing costs. The commonality of the results from the two simulation models was that the differences in the volume of lumber produced, between the logs that were studied, was a critical component in determining which log parameter had the most effect on changing the dynamics of the sawmill system. To enable hardwood managers a more precise method of allocating raw material costs to the lumber products, a methodology was developed that uses the principles of activity-based costing to allocate raw material costs. The proposed methodology, termed the lumber yield method, uses lumber yield values from logs with similar characteristics to allocate raw material costs to the lumber products. Analysis of the output from the simulation models illustrated that with the lumber yield method, the amount of raw material costs allocated to the products was not significantly different than the amount allocated by the activity-based costing method. The calculated raw material costs of the products were however, found to be significantly different between the lumber yield method and the traditional volume costing method. / Ph. D.

Detta examensarbete handlar om hur ett möbelproducerande företags råmaterialförsörjning går till. Företaget som har varit värd för arbetet är ett möbeltillverkande företag som heter Stolab och ligger i Smålandstenar. Studiebesök och intervjuer har hos Stolab och deras leverantörer legat till grund för det arbete som vi har utfört. Ämnen som är behandlade är kvalitetsaspekter på råmaterialet samt hur relationerna mellan kund – leverantör fungerar. Arbetet fokuserar främst på den sista punkten, hur relationerna ser ut mellan kund leverantör, vilka möjligheter man har att förbättra kommunikationen mellan företagen och hur inköp och lagerhållning kan fungera. För att kunna förbättra kvaliteten på det råmaterial som kommer till företaget så är en viktig del i det att öka förståelsen för de krav som ställs. Kraven måste också kommuniceras på ett effektivt sätt. Vi har utarbetat en modell för hur detta samarbete kan gå till samt gett en del andra förslag till åtgärder för att kunna förbättra kvalitet på materialet och förbättra relationerna. / This final thesis deals with the hardwood raw material procurement in a furniture producing company. The company that has been our host is a furniture producing company called Stolab situated in Smålandstenar. The study visits and interviews we have completed has been the base of this work and the theory studies that we have made. Subjects that have been treated in this report are quality aspects on the raw material and also the relationships between customer and the supplier. The discussion is focused on the latest mentioned part, which possibilities there are to improve the communication between the companies and how purchase and store-keeping can work. To be able to improve the quality of the raw material that is being delivered to the company an important part is to gain the understanding of the demand that is set. The demands also need to be communicated in an efficient way. We have worked out a model which gives suggestions to motions to be made to improve the quality of the raw material and the relationships between customers and suppliers.

<p>Detta examensarbete handlar om hur ett möbelproducerande företags råmaterialförsörjning går till. Företaget som har varit värd för arbetet är ett möbeltillverkande företag som heter Stolab och ligger i Smålandstenar. Studiebesök och intervjuer har hos Stolab och deras leverantörer legat till grund för det arbete som vi har utfört. Ämnen som är behandlade är kvalitetsaspekter på råmaterialet samt hur relationerna mellan kund – leverantör fungerar. Arbetet fokuserar främst på den sista punkten, hur relationerna ser ut mellan kund leverantör, vilka möjligheter man har att förbättra kommunikationen mellan företagen och hur inköp och lagerhållning kan fungera. För att kunna förbättra kvaliteten på det råmaterial som kommer till företaget så är en viktig del i det att öka förståelsen för de krav som ställs. Kraven måste också kommuniceras på ett effektivt sätt. Vi har utarbetat en modell för hur detta samarbete kan gå till samt gett en del andra förslag till åtgärder för att kunna förbättra kvalitet på materialet och förbättra relationerna.</p> / <p>This final thesis deals with the hardwood raw material procurement in a furniture producing company. The company that has been our host is a furniture producing company called Stolab situated in Smålandstenar. The study visits and interviews we have completed has been the base of this work and the theory studies that we have made. Subjects that have been treated in this report are quality aspects on the raw material and also the relationships between customer and the supplier. The discussion is focused on the latest mentioned part, which possibilities there are to improve the communication between the companies and how purchase and store-keeping can work. To be able to improve the quality of the raw material that is being delivered to the company an important part is to gain the understanding of the demand that is set. The demands also need to be communicated in an efficient way. We have worked out a model which gives suggestions to motions to be made to improve the quality of the raw material and the relationships between customers and suppliers.</p>