A study was undertaken to describe the patterns of hardwood lumber production, distribution, and consumption in the Southeast. Current distribution patterns were compared with theoretically optimal patterns in an attempt to estimate the efficiency of the current distribution system. A combination mail questionnaire and telephone survey was used to gather data for the study. The linear programming transportation model was employed to develop the optimal lumber distribution patterns. It was concluded that some inefficiencies exist in the current hardwood lumber distribution patterns. Possible explanations for some of the differences between current and optimal distribution patterns were discussed. Suggestions were made to reduce some of the differences attributable to system inefficiencies. Although the study results indicated that total transportation costs could be reduced by restructuring the current distribution patterns, no conclusions regarding benefits from the cost reductions could be drawn. It was concluded that beneficiaries depend upon existing pricing policy and market structure. / M.S.