Optimal Design for Biodiesel Supply Chain: Case Study

One renewable energy form currently being promoted is that of biodiesel asa substitute for diesel fuel. This involves mixing with petrodieselin proportions governed by the respective regulations each country. Thepurposes this research are to support exploiting forms ofrenewable and optimize palm oil-sourced supply chainby conducting an Indonesia-based case study. The optimization process wasimplemented in accordance government’s mandate long-termplanning. There two decision variables consider. First, model willidentify optimum delivery point locations as a blending terminal betweenbiodiesel petrodiesel (petroleum diesel). Second, it will determine thelocation plants’ construction order satisfy government’smandate. results show that, while determining locationsaffects chain costs, does not do so significantly. More influentialis plants studyprovides deciding points biodieselplants minimize costs Indonesia. study presents detail Indonesia basedon literature, no was found on studying biodieselsupply