I rearranged the 11 connected furniture workshops to prevent the warehouse from delivering timber as fast as it was used, so that the timber stored in those workshops wouldn't increase indefinitely and excess production from the 6 connected timber yards would eventually accumulate in the warehouse. However, I wasn't satisfied with that work-around, and decided to take a break from building Massilia to see what was happening.
The problem turned out to be that there were 2 additional furniture workshops (right next to a timber yard) that had no road connection to the timber warehouse, and while those 2 workshops were kept supplied, at any given time at least one had only 1 timber stored. When both of those workshops had 2 timber stored almost all of the time (simply arranged by preventing their furniture deliveries for a little while), the (unconnected) warehouse went back to delivering timber normally almost all of the time.
The apparent algorithm is that a warehouse will try to deliver raw material if any workshop (even an unconnected one) that uses the material has less than 2 stored. If there are no connected workshops with less than 2 of the raw material stored, the delivering warehouse will deliver to another warehouse that will take the material or to a workshop that already has 2 (or more) of the material stored, similar to the way a warehouse is "emptied". (Two connected warehouses will merrily deliver raw material to each other if there is an unconnected workshop that uses the material.)
There's always more to be learned about Caesar III!
(For Pharaoh players--since I've seen a storage yard delivering raw material to another storage yard (and it was when there was an unconnected workshop that used the material), I ran a quick test, with negative results. Even with an unconnected workshop that used the raw material, a Pharaoh storage yard wouldn't try to deliver to a workshop that already had 200 of the material stored.)
[This message has been edited by Brugle (edited 03-18-2001 @ 05:17 PM).]