A Mixed Integer Linear Programming Model for Operational Planning of a Biodiesel Supply Chain Network from Used Cooking Oil

Jonrinaldi, Jonrinaldi and Salastino, Rades and Hadiguna, Rika Ampuh A Mixed Integer Linear Programming Model for Operational Planning of a Biodiesel Supply Chain Network from Used Cooking Oil. In: 3RD INTERNATIONAL MATERIALS, INDUSTRIAL AND MANUFACTURING ENGINEERING CONFERENCE (MIMEC2017), November 2017, Miri, Malaysia.

Text AIP Conference Proceedings Volume 1902 No.1-2.pdf - Published Version Restricted to Repository staff only Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (6MB) | Request a copy

Abstract

Environmental consciousness has paid many attention nowadays. It is not only about how to recycle, remanufacture or reuse used end products but it is also how to optimize the operations of the reverse system. A previous research has proposed a design of reverse supply chain of biodiesel network from used cooking oil. However, the research focused on the design of the supply chain strategy not the operations of the supply chain. It only decided how to design the structure of the supply chain in the next few years, and the process of each stage will be conducted in the supply chain system in general. The supply chain system has not considered operational policies to be conducted by the companies in the supply chain. Companies need a policy for each stage of the supply chain operations to be conducted so as to produce the optimal supply chain system, including how to use all the resources that have been designed in order to achieve the objectives of the supply chain system. Therefore, this paper proposes a model to optimize the operational planning of a biodiesel supply chain network from used cooking oil. A mixed integer linear programming is developed to model the operational planning of biodiesel supply chain in order to minimize the total operational cost of the supply chain. Based on the implementation of the model developed, the total operational cost of the biodiesel supply chain incurred by the system is less than the total operational cost of supply chain based on the previous research during seven days of operational planning about amount of 2,743,470.00 or 0.186%. Production costs contributed to 74.6 % of total operational cost and the cost of purchasing the used cooking oil contributed to 24.1 % of total operational cost. So, the system should pay more attention to these two aspects as changes in the value of these aspects will cause significant effects to the change in the total operational cost of the supply chain

Actions (login required)

View Item