Sustainability and profitability of Malaysia crude palm oil supply chain management: system dynamics modelling approach
Nankai Business Review International
ISSN: 2040-8749
Article publication date: 25 October 2022
Issue publication date: 23 November 2023
Abstract
Purpose
The agriculture industry has a considerable impact on Malaysia’s economy, as seen by its contribution of roughly 8.2% of gross domestic product in 2018 and its potential to absorb 11.09% of Malaysian labor in the same year. This study aims to simulate rising output in a system model of sustainable and profitable crude palm oil (CPO) supply chain management (SCM) and to formulate policy solutions to build sustainable and profitable SCM of Malaysian CPO.
Design/methodology/approach
This research included both primary and secondary data. This study used the dynamic system model to simulate palm oil land expansion, replanting policies and environmentally friendly growing techniques.
Findings
This study’s findings suggest that the dynamic system model of Malaysia’s CPO’s sustainable and profitable SCM is valid when its structure and performance are tested. The fifth scenario provides the best results, with the most significant net benefit value compared to the other scenarios.
Originality/value
The ideal policy alternative is replanting sustainable agricultural practices without burning technologies during new land clearing to achieve the best net advantages.
Keywords
Acknowledgements
The authors acknowledge all Malaysian experts for confirming the systematic thinking on the formation of the research model.
Funding: This research received no external funding.
Data Availability Statement: All data are available online at Malaysian Palm Oil Board https://bepi.mpob.gov.my/index.php/en/.
Conflicts of Interest: The authors declare no conflict of interest.
Supplementary Materials: All figures and tables are created by the first author.
Author Contributions: Conceptualization, Mareeh, H. Y. S. and Dedahujaev, A.; methodology, Mareeh, H. Y. S.; software, Mareeh, H. Y. S.; validation, Mareeh, H. Y. S., Prabakusuma, Mareeh, H. Y. S.; investigation, Mareeh, H. Y. S.; resources, Mareeh, H. Y. S.; data curation, Mareeh, H. Y. S., Rami Abdullah Aleryani; writing – original draft preparation, Mareeh, H. Y. S.; writing – review and editing, Mareeh, H. Y. S.; supervision.
All authors have read and agreed to the published version of the manuscript.
Citation
Mareeh, H.Y.S., Prabakusuma, A.S., Hussain, M.D., Patwary, A.K., Dedahujaev, A. and Aleryani, R.A. (2023), "Sustainability and profitability of Malaysia crude palm oil supply chain management: system dynamics modelling approach", Nankai Business Review International, Vol. 14 No. 4, pp. 698-719. https://doi.org/10.1108/NBRI-01-2022-0003
Publisher
:Emerald Publishing Limited
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