Dynamic Programming for Feedlot Optimization
Abstract
Optimal operation of enterprises engaged in slaughter animal production entails determining
what initial weight animal should be purchased
the final selling weight
the length of completion time
the number and length of feeding periods within this time
what ration and its quantity should be fed in each of these periods to balance feed costs, purchase cost of feeders, and time-dependent fixed costs such as yardage, handling, maintenance, and interest against market selling prices in such a way as to maximize total profit. The model presented uses dynamic programming to perform this task, and is structured so as to be functionally independent of any feed consumption-weight gain relationships, making it adaptable to feeding operations for any type of animal.
