Abstract
It is well known that crude palm oil (CPO) is obtained from the milling process of raw bunch, called fresh fruit bunch (FFB). The process usually flows through a series of stages producing and consuming intermediate products. It is assumed that the CPO industry considered in this paper does not own oil palm plantation, in such a way that the FFB are supplied by several public plantations. Due to the availability of FFB, it is then necessary to select from which plantations should be appropriate. This paper describes a mixed integer linear programming model to tackle the supply chain integrated problem, along with waste problem. The mathematical optimization model is solved using generalized reduced gradient search approach.
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