Tactical optimization of the oil palm agribusiness supply chain

Abstract

A dynamic mathematical programming model of the oil palm harvest and extraction supply chain is presented. The model in question has nonlinear and mixed integer features both in its objective function and constraints. The nonlinear nature of the problem is treated in the solving procedure by adequately redefining some original variables, creating and penalizing some others, generating valid inequalities and modifying certain constraints. As a result, an equivalent MIP model is obtained and validated by a computational simulation experiment.