For the sake of consistency, the same assumptions made in loading operations will 

 be used for unloading where applicable; that is, car volume is 40 M board feet; wage 

 cost is $4.00 per hour; and forklift operating cost is $0,950 per hour. 



At 1-1/2 man-hours to unload 40 M board feet, the productivity rate is 26.7 M 

 board feet per man-hour. 



The total wage cost for unloading is $6.00 and the machine operating cost is 

 $0.71 for a combined total of $6.71 for 40 M board feet, or $0,168 per M board feet. 



■ UNLOADING BOXCARS 



The cost of unloading a boxcar of loose lumber is difficult to determine because 

 of the variation in orders. A highly mixed load can require two men as much as 3 days. 

 On the other hand, a straight car shipment can be unloaded in 12 hours by two men. It 

 will be assumed that 15 hours are needed to unload a boxcar. 



At this rate, productivity is 1.33 M board feet per man-hour. Usually the yard 

 will use pickup labor procured at the local employment agency. The wage cost for this 

 is estimated at $2.75 per hour. Thirty man-hours at $2.75 results in a wage cost of 

 $82.50 per 40 M board feet, or $2,062 per M board feet. The costs of supervision and 

 of moving lumber from the car siding are not included. 



COST SUMMARY AND COMPARISON 



The total marketing impact of packaged lumber involves both the producer and his 

 customer. This section summarizes the costs and benefits that accrue to the lumber 

 mill and to the yard. 



LUMBER MILL 



The lumber producer is directly concerned with costs up to and including the 

 loading of lumber. The total costs per M board feet to the producer for packaged 

 lumber are ■ • 



Hand Machine 



Band $1.09 $0.81 



Wrap - 1.79 1.34 



Load 1. 16 1. 16 



Total $4.04 $3.31 



The total cost for unpackaged lumber is $2.30, which is $1.01 less than machine packaged 

 lumber and $1.74 less than hand packaged lumber. 



By offering this service, the mill operator is providing some degree of product 



differentiation as compared to the mill that doesn't offer packaged lumber. 



Aside from this, the mill operator is obtaining a service charge over the current 



selling price. In most instances, this service charge is enough to cover the additional 

 cost . 



9 



