Optimization and analysis for palm oil mill operations via input-output optimization model

• Main Authors: Foong Steve Z. Y., Andiappan Viknesh, Tan Raymond, Ng Denny K. S.
• Format: Article
• Language: English
• Published: EDP Sciences 2019-01-01
• Series: MATEC Web of Conferences
• Online Access: https://www.matec-conferences.org/articles/matecconf/pdf/2019/17/matecconf_rsce18_02006.pdf

A typical palm oil mill produces crude palm oil, crude palm kernel oil and other biomass from fresh fruit bunches. While the milling process is well established in the industry, insufficient research and development has been done on analyzing the operational performance of a mill. Factors such as operating time and fruit availability affect the performance of a palm oil mill (e.g., capital, operating and labor costs). This paper presents an input-output model to optimize the operations of a palm oil mill based on maximum economic performance. Following this, feasible operating range analysis (FORA) is performed to study the utilization and flexibility of the process. A palm oil mill case study in Malaysia is used to illustrate the proposed approach. Based on the optimized results, it was found that 37% reduction in capital cost and 49% increase in economic performance is achieved. Meanwhile, the utilization index of the mill during peak season increases from 0.48 to 0.76.