Perencanaan Optimasi Supply Chain of Crude Palm Oil Industry Menggunakan Model Mixed Integer Linier Programming

Abstract

The Crude Palm Oil (CPO) industry is an important business that has a network system or also known as a supply chain. The supply chain system or also known as the supply chain procures materials, then processes these materials into semi-finished products in the form of CPO, and distributes the semi-finished crude palm oil (CPO) products to customers, this process is called the supply chain system or also known as supply chain. In this study, the CPO mill industry does not have its own oil palm plantations, FFB (palm fruit bunches) are supplied by smallholder oil palm plantations in the vicinity, both private and government. The availability of FFB is limited, therefore management needs to choose which plantations will meet the demand. This research designs a solution model that is expected to be a useful planning tool to minimize production and transportation costs from processing CPO to shipping CPO to consumers. In developing a mixed integer linear programming model for the integration of production planning and distribution planning problems for the crude palm oil (CPO) industry in solving problems using a direct search approach.