Title: Determining optimal replanting rate in palm oil industry, Malaysia: a system dynamics approach optimal policy search in oil palm plantation feedback loops using system dynamics optimisation

Authors: Mohd Zabid Mohd Faeid; Norhaslinda Zainal Abidin; Shri Dewi Applanaidu

Addresses: School of Quantitative Sciences, College of Arts and Sciences, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia ' Institute of Strategic Industrial Decision Modeling, School of Quantitative Sciences, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia ' School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

Abstract: One of the important factors that contribute to the stagnant growth of Malaysia's crude palm oil production is the accumulation of ageing oil palm plantation area. Given the scarcity of new plantation area in Malaysia, it is very important that an optimal replanting rate has to be determined to decrease the accumulation of ageing area. The objective of this study is to determine an optimal replanting rate for oil palm industry in Malaysia. This study compared the trend results of fresh fruit bunches (FFB) yield using base run system dynamics (SD) and SD with optimisation analysis. Findings indicate that the proposed optimal replanting rate based on SD revealed the maximum production of the FFB yield by year 2050 compared to base run analysis. Findings from this study proposed the appropriate planting strategy to ensure the continuous supply of palm oil without significant disruption if high replanting rate has been implemented.

Keywords: fresh fruit bunches yield; oil palm plantation; system dynamics optimisation; optimal replanting rate; Malaysia.

DOI: 10.1504/IJIDS.2020.106728

International Journal of Information and Decision Sciences, 2020 Vol.12 No.2, pp.136 - 153

Accepted: 25 Oct 2018
Published online: 04 Apr 2020 *

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