Optimization of Supply and Demand Balance in a Palm Oil Supply Chain

Abstract

This research investigates the issues of determining supply and demand
balance in a palm oil supply chain. A methodology is presented for
selecting markets and finding an optimized supply chain when considering
agricultural plantation, oil production, and logistics. A proposed tool assists
policy makers, with given market demands, in deciding which market should
be selected, how much demand in that market should be served, and how to
manage the supply chain optimally to meet the target demand (how much land
should be allocated to what zone in the country, and how the logistics network
from plantations to markets should be designed). A methodology is developed
based on an optimization model that will allow policy makers to answer these
questions. Numerical experiments are conducted to illustrate the models.
Optimization of Supply and Demand
Balance in a Palm Oil Supply Chain

Keywords: Palm oil supply chain management, Supply and demand balance,
Market selection, Optimization