ANNOTATION: The Wood Residue Distribution Simulator (WORDS) attempts to find a least-cost allocation of residues from local sources of supply to local sources of demand, given the cost of the materials, their distribution, and the distribution of demand. The results are useful in evaluating the feasibility of developing wood energy either for a sub-region in general or for specific locales. This paper gives an example of its application to mill residues in the State of Georgia. ABSTRACT: Successful development of woody biomass for energy will depend on the distribution of local supply and demand within subregions, rather than on the total inventory of residues. The Wood Residue Distribution Simulator (WORDS) attempts to find a least-cost allocation of residues from local sources of supply to local sources of demand, given the cost of the materials, their distribution, and the distribution of demand. The results are useful in evaluating the feasibility of developing wood energy either for a subregion in general or for specific locales. This paper describes WORDS and gives an example of its application to mill residues in the State of Georgia.