Heterogeneity in the properties and arrangement of constituents can ha
ve an important effect on a composite's properties. This paper evaluat
es the effects of variability in wood strand dimensions, mechanical pr
operties, and orientation on the engineering properties of cement exce
lsior board. The finite element method is used to analyze a heterogene
ous three-dimensional microstructure of strands, predicting elastic an
d strength properties. Results suggest that variability in strand mech
anical properties can significantly lower composite tensile and compre
ssive strengths, while composite stiffness is not affected. The model
also predicts that relatively modest alignment of strands can lead to
significant increases in composite strength and stiffness in the direc
tion of alignment.