Opportunities of integrating supply chain quality management and product development with formulation systems in compound feed manufacturing

Abstract

Introduction To maximize the performance of the target animal group, marketoriented feed production aims high-quality products by considering variability of ingredient quality attributes in the least cost formulations. Supply chain quality management systems reveal information that formulation can apply to achieve benefits. Materials and Methods Feed product had been formulated both with inear and stochastic programming on different probability levels with nutrient averages and the standard deviation of a key nutrient in ingredient batches from two vendors. The information sources of formulation were mapped, as well as the uses of output data. Results Data sources of formulation are internal (from feed manufacturer) and external (from vendors). Output data from formulation is mainly used internally, but available also for supply chain quality management. Formulation simulates the implications of raw material variability from suppliers and helps to identify areas of vendor development. Conclusion Formulation provides possibility to consider ingredient variability to reach product target on higher probability levels. Integration between supplier quality management and feed formulation brings the benefits of more consistent product quality, lower costs of rations, accuracy in planning, support in ingredient purchasing decisions, better traceability, improvement of supplier performance, and internal quality management processes.