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The use of multi‐blending as a technique for managing ingredient purchasing for feed manufacturers
Author(s) -
Bussman R.
Publication year - 1981
Publication title -
journal of the american oil chemists' society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.512
H-Index - 117
eISSN - 1558-9331
pISSN - 0003-021X
DOI - 10.1007/bf02582368
Subject(s) - ingredient , purchasing , production (economics) , active ingredient , product (mathematics) , linear programming , business , computer science , mathematics , marketing , algorithm , economics , food science , bioinformatics , chemistry , geometry , biology , macroeconomics
The Multi‐Blend program uses multiple‐product linear programming procedures to solve up to twenty individual formulas in one matrix, simultaneously. This technique utilizes the total production tonnage requirements of each feed formula. It optimizes the use of ingredient inventory within the plant's complete product line for a production period. The Multi‐Blend program is especially valuable for making decisions concerning the purchase of ingredients. The program produces reports that generate ingredient usage on previous production formulas compared with current ingredient usage for the production period being analyzed. Restrictions based upon total ingredient supply may be imposed to optimize the use of a limited resource, thus maximizing profits. Conversely, the program will force bad‐buy ingredients in oversupply into the group of formulas, thus minimizing losses. Both cases optimize the use of an ingredient to be purchased, in the quantities available, for purchasing and production formulation.