A Fuzzy Analytic Hierarchy Process (FAHP) Approach to Multi-Objective Optimisation of Oil Palm Value Chains

The economic potential of palm oil and palm-based biomass can be realised through oil palm’s very high vegetable oil yield and the wide variety of high-value products that can be derived from it. This potential can be maximised through streamlined oil palm value chains (OPVCs) which involve considering different environmental impacts alongside the economic benefits. Multi-objective optimisation aids in the development of a strong value chain by generating valuable planning insights based on the most appropriate set of impact weights. However, a typical approach in assigning impact weights is arbitrary or based on rough estimates. This study develops a decision framework to support planning and designing OPVCs. The decision framework is a novel approach of integrating a fuzzy analytic hierarchy process (FAHP) to the multi-objective optimisation of OPVCs. This enables descriptive judgments to be converted into numerical weights. An optimal design is then generated based on these weights. A case study based on Malaysian palm oil biomass scenario is presented to illustrate the decision tool. This could help develop better policies in the future through a systematic approach in dealing with sustainability issues in the palm oil industry.