(185b) Development of a Spatio-Temporal Multi-Objective Optimisation Model for Multi-Product Oil Palm Value Chains
In this conference, we will present a spatio-temporal mixed integer linear programming (MILP) model that can simultaneously determine the design and operation of multi-product value chains [2-3] for oil palm. A value chain is a set of activities required to convert raw materials into products and services, including pre-processing and pre-treatment, conversion to intermediates and final products, logistics, inventory and waste management . The model is used to examine and optimise different scenarios in the oil palm sectors in Peninsular Malaysia. In order to capture the spatial-dependencies of the problem, such as the candidate locations for oil palm plantations and processing facilities, and location of demands, Peninsular Malaysia is represented as a grid of 50 km squares. The candidate locations for oil palm plantations are modelled in GIS in order to exclude forests, peatlands and other land areas whose utilisation may result in emissions of stored CO2. The model considers a long planning horizon, out to 2050, in order to model the staged investment in and retirement of technologies. The model determines interdependent decisions such as where to locate the plantations and processing facilities, when to invest in them and what size/capacity; what products to produce, how to transport and store resources, centralised or distributed production, among others. Different objectives are considered such as maximisation of profit and minimisation of GHG emissions. Pareto sets are generated in order to determine optimal solutions that represent a balance between economic gain and environmental protection.
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