A Productivity Outlook for a Multi-Criteria Animal Feed Formulation Problem: A Case Study of Nigerian Feed Mill Industry

Abstract

Over-formulation or under-formulation of animal feed is a major challenge in a feed milling operation .While overfeeding unnecessarily increases the feed cost; underfeeding on the other hand reduces the performance of the animal and the overall productivity of the feed milling operation. This study therefore addressed how a multi-criteria feed formulation affects the productivity of feed milling business with the use of mathematical programming in bringing about an optimal solution that is both economical and brings out the best energy yield. The solution procedure employed in this study is an iterative multi-objective optimization method. Here the optimization of the metabolizable energy and ration cost is solved iteratively using a non-differentiable interactive multi-objective bundle-based optimization method which will then result into different alternative optimal formulations. These alternatives were then evaluated using the multi-factored productivity techniques to determine the interactions between each of the optimal solutions. The performance of the four alternative optimal solutions (C ingredient) generated were factored into the productivity model together with other input factors such as the cost of fuel (C fuel),cost of labour (C labour) and cost of packaging (C packaging). The productivity index estimated from the four alternative optimal formulations includes 1.13, 1.144, 1.06, and 0.96 respectively. This shows that the optimal feed formulation generated in alternative 2 produces the highest profit (14.35%) and hence highest productivity index (1.144). Hence, the multi-factored productivity index is therefore a measure of performance in a feed mill industry when considering the impact of feed formulation on the overall cost of production in a feed mill industry.