Question: 3) Shrink Problem (10 pts): You have a 10,000 head feedlot and are planning to put up silage that will cost you $62/ton (as-fed basis)

3) Shrink Problem (10 pts): You have a 10,000 head feedlot and are planning to put up silage that will cost you $62/ton (as-fed basis) to get into the pit. You assume an annual feedlot capacity of 85%. Additionally, you calculate an average intake of 26 lbs/day for the year on a DM basis. Your silage is 35% DM and you want to feed 15% silage year round. a) If you are going to feed the silage at 15% of the diet on a DM basis, how much silage do you need to put in the bunker (as-fed) assuming zero shrink? b) Assuming 10% shrink? c) How much did this 10% shrink cost you? d) What is the additional cost if you didn't cover the pit and shrink increased from 10% to 20%?

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