The production management strategy for plywood companies in China are discussed in this paper.The principle of optimum system design and the decision-making theory are used to analyze the main problems in Chinese plywood companies.The critical issues that are involved are how to make reasonable grades and sorts of the products,a quality tracking and feedback system to ensure high quality management,and building a database for production management.Based on the analysis,the optimum management models of production mix are stated.Finally,two kinds of decision-making methods are recommended for helping plywood companies fulfill more effective management.