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Purchase calculations

Worked purchasing examples use hypothetical quantities and prices to explain unit conversion and scope. They are not live quotes or promises of availability.

01

Price research: sources, limitations and update method

A rate reviewed today but labeled “June 2026” stays a June 2026 published rate. The review date tells you when the source was checked, not when the supplier changed its price.

What should be checked?
  • Keep source and access date.
  • Preserve the published effective date.
  • Record unit, specification and exclusions.
  • Flag unresolved information.
  • Reconfirm with the supplier before committing.
Work through the decision ↗
02

Yield, freight and quantity breaks: find the true purchase cost

A hypothetical 200 SF finished requirement at 85% usable yield needs about 235.3 SF of input coverage. Add-on waste of 15% would instead give 230 SF. Keep the basis explicit and round to purchasable boards only after reviewing lengths.

What should be checked?
  • Build the finished cut list or area.
  • Label loss assumptions and avoid double counting.
  • Compare quantity-tier totals.
  • Confirm freight and unloading scope.
  • Retain the approved tally and terms.
Work through the decision ↗
03

Timber, log and lumber futures prices: three different markets

A hypothetical log report lists $800/MBF under a named log scale. That is not evidence that retail dry lumber should sell for $0.80/BF: recovery, processing, quality distribution and selling costs intervene.

What should be checked?
  • Identify stumpage, delivered log or lumber.
  • Keep region and report period visible.
  • Name the log scale and grade.
  • Separate forecasts from observations.
  • Use matching supplier quotes for buying decisions.
Work through the decision ↗
04

Rough, S2S, S3S and S4S prices: drying and milling costs

Hypothetical rough stock costs $500 plus $150 machining and $100 extra handling. Comparable finished stock costs $700 delivered. The rough option totals $750 before considering any additional yield loss.

What should be checked?
  • Confirm drying condition and moisture requirement.
  • Document supplied and finished dimensions.
  • Itemize machining and setup.
  • Approve profile and cover width.
  • Recalculate usable output after milling.
Work through the decision ↗
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