Dynamic Programming for Feedlot Optimization

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.