VALUE RECOVERY is a measure which indicates how much value was extracted from the raw material. The goal is to maximise the value extracted from the raw material used while satisfying the needs of York’s customers. The value recovery is calculated based on a ratio between the average selling price of the final product and the cost of all the raw materials (typically logs and glue) used to produce the final product.
The products that Mr Kwamba produced in the previous example were structural products. This basket of products is of higher value compared to other products.
This means he will achieve a good value recovery.
Although Michelangelo did not achieve a high volume recovery in the previous example, the statue would sell for more than the marble countertops.
In other words, if Michelangelo made marble countertops, he achieves higher volume recovery but if he sells the statue, he achieves higher value recovery.