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Optimization of the Crude Palm Oil Supply Chain Using a Mixed Integer Linear Programming Model |
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PP: 2915-2921 |
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doi:10.18576/isl/120902
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Author(s) |
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L. Lilis,
S. Sutarman,
S. Suwilo,
O. S. Sitompul,
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Abstract |
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| The Crude Palm Oil (CPO) industry is a significant industry with a well-established network system, also known as a supply chain. The CPO industry is involved in the production, processing, and distribution of palm oil, which is derived from the fruit of the oil palm tree. In this paper it is considered that the CPO mill industry does not have its own oil palm plantations, so FFB (fresh fruit bunches) are supplied by nearby smallholder oil palm plantations, both private and government. Because the supply of FFB is limited, management must decide which plantations will meet the demand, therefore the Crude Palm Oil industry operates through a more complex network system. This paper addresses a discrete optimization model that is expected to be a useful planning for the Crude Palm Oil (CPO) industry incorporating selecting the oil palm plantation. An improved feasible neighborhood search approach is proposed to solve problems.
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