Supply chain model for green gasoline production based on palm oil plant

Abstract

Palm oil is used as a raw material for biofuel, one of which is to produce green gasoline. This study examines the appropriate supply chain model for producing palm oil-based green gasoline. The study necessitates a thorough supply chain analysis of palm oil plants including plantations, mills, and green gasoline factories. A state-owned palm oil company in Indonesia conducted case study research. In addition, Focus Group Discussion and in-depth interview were used in this study. This integrates several analytical models, including value stream mapping, capacity planning, and analytical hierarchy process. By value stream mapping, it was found that green gasoline with a capacity of 20,000 barrels oil per day can be produced with 179.5 tons of industrial palm oil per hour. By analytic hierarchy process, it was found that the decision-making variable for the actor was a state-owned enterprise (42%) to implement green gasoline production. For variable criteria, government policy was found (31%). Finally, an integrated system between plantations, palm oil mills, and gasoline plants with centralized administration from raw materials to green gasoline production (67%) was the best alternative. Further research is needed to find the ideal number of palm oil mills to be a green gasoline plant utilizing simulation modeling of application scenarios.