Design of transportation and distribution Oil Palm Trunk of (OPT) in Indonesia

Abstract

This research initiated from the area of oil palm plantations in Indonesia 13 million hectares, triggering consternation of abundance of oil palm trunk when garden regeneration is done. If 4 percent of the area is rehabilitated every year, almost 100 million cubic feet of oil palm will be trash. Biomass in the form of pellets can be processed from oil palm trunk. It is then disseminated back to the palm oil processing area into biomass. The amount of transportation cost of the used ships and trucks was defined as parameters. So the objective function determined the type and number of ship and truck trips that provide the minimum transportation cost. To optimize logistics transportation network in regional port cluster, combining hub-and-spoke transportation system among regional port with consolidation and dispersing transportation systems between ports and their own hinterlands, a nonlinear optimization model for two-stage logistics system in regional port cluster was introduced to simultaneously determine the following factors: the hinterlands serviced by individual ports and transportation capacity operated between each port and its hinterland, cargo transportation volume and corresponding transportation capacity allocated via a hub port from an original port to a destination port, cargo transportation volume and corresponding transportation capacity allocated directly from an original port to a destination port. Finally, a numerical example is given to demonstrate the application of the proposed model. It can be shown that the solution to the proposed non-linear model can be obtained by transforming it into linear programming models.