Abstract

Oil palm processing industry in Malaysia can directly distribute the finished products in exporting without considering the transformation value of the product to the end customer. Nevertheless, it influences the configuration of the supply chain strategy. The purpose of this study measures the performance of supply chain configuration in oil palm business. The model use tools for measuring supply chain configuration with integrating SCOR models and discrete event simulation. Finding of this study revealed that the highest value-added of oil palm derivative product is scenario 5 which it proposes 100% CPO and CPKO deliver to the local refinery without distributing to the export and its finished products are distributed to the export through the port. Finally, it gives consideration to the stakeholders in controlling the system and then makes sure the business process keeps running on the track.

Keywords:

Discrete event simulation, oil palm industry , SCOR model, supply chain configuration,

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Competing interests

The authors have no competing interests.

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