Design And Optimization Of Agro-Scm For Food And Energy Security In Indonesia

Abstract

World palm oil consumption has significantly increased over the years. Palm oil is one of the world's most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as source for bio-fuel or biodiesel. Global palm oil production is dominated by Indonesia and Malaysia. These two countries together account for around 85 to 90 percent of total global palm oil production. Indonesia is currently the largest producer and exporter of palm oil worldwide.Indonesia has scored a significant achievement on oil palm development by becoming the biggest palm-oil-producing country in the world, both in terms of plantation area and in total national production of palm oil. Crude Palm Oil (CPO) is a commodity which has a strategic value to be developed for Indonesian economy. On the long term, global palm oil demand shows an increasing trend as an expanding global population gives rise to increased consumption of palm-oil based products.This fast-paced growth of the CPO production and the increase of world CPO demand have necessitated extensive supply chains across the country to facilitate sourcing and distribution of production. The purpose of this paper is to design, construct and simulate a model to capture the structure of CPO supply chain system in order to predict demand and supply, production, revenue and cost, with the ultimate purpose of optimizing the potential growth CPO agro-industries for food and energy security in Indonesia The system dynamic model can be deployed to simulate and optimized some pattern of selected components. Model validations were done to improve fitness of the model.