OSB LOCATION - A COMPUTER-MODEL FOR DETERMINING OPTIMAL ORIENTED STRANDBOARD PLANT LOCATION AND SIZE/

A computer model (OSB/LOCATION) for determining the most economically desirable location and size of an oriented strandboard (OSB) plant is presented. This model embodies an analytical procedure that combines m ixed-integer linear programming (MILP) with a discounted cash flow (DC F) method of investment analysis. MILP is first used for determining t he potential location and size of an OSB plant that is most cost-effic ient to establish and operate, given a finite set of location and size options and considering major constraints such as timber supply, prod uct market demand, and capital availability. Then, the economic desira bility of the investment required to establish such a plant is evaluat ed using the DCF method. The model is capable of providing, whenever n ecessary alternative feasible solutions for consideration by decision makers who may want to include other non-economic factors such as comm unity life quality and political preference in making the final siting decision.