Sustainable supply chain design for waste cooking oil-based biodiesel in bogor using dynamic system approach

Abstract

Biodiesel is one of the alternative fuels that are environmentally friendly. Besides palm oil, biodiesel can also be produced from waste cooking oil. Since 2007, the government of Bogor has been utilizing waste cooking oil into biodiesel for use as Transpakuan bus’ fuel. However, in practice, the amount of waste cooking oil supplied is never sufficient the needs of fuel of 30 units Transpakuan bus. The main objective of this research is to analyze the availability of waste cooking oil that will be converted into biodiesel within the next ten years as well as providing policy advice to support the program. The method used is a dynamic system that is followed by simulation of multiple scenarios that have been defined. The system is divided into three subsystems, namely supply subsystem, demand subsystem, and production subsystem. The results showed that the current system is not able to guarantee the sustainability of the supply chain of waste cooking oil as a raw material of biodiesel. From some of the scenarios tested can be concluded that biodiesel needs would increase in line with the trend of the use of environmentally friendly fuels. It takes a new system and a new policy relating to the biodiesel supply chain. Policy suggestions that can be proposed from this research is to increase supplier participation, objectify the program of converting angkot into Transpakuan bus, and support the development of biodiesel industry.