Multi-Product Productions from Malaysian Oil Palm Empty Fruit Bunch (EFB): Selection for Optimal Process and Transportation Mode

Abstract

In Malaysia, palm oil industries have played significant roles in the economic sectors and the nation’s developments. One aspect of these industries that is gaining growing interest is oil palm residue management and bio-based product generations. EFB has been identified to be a feasible raw material for the production of bio-energy, bio-chemicals, and bio-materials. In this paper, our previous deterministic mathematical programming model was extended to include decisions for selecting optimal transportation modes and processes at each level of the processing stage in the supply chain. The superstructure of alternatives was extended to show states of produced products whether solid, liquid, or gaseous, and for which truck, train, barge, or pipeline would be possible modes of transportation. The objective function was to maximize profit which accounts for associated costs including the emission treatment costs from production and transportation. The optimal profit was USD 1,561,106,613 per year for single ownership of all facilities in the supply chain.