This paper presents a systematic framework for optimal utilization of by-products generated during
crude palm oil refining processes. Three by-products are considered in the supply chain network: soapstock,
palm fatty acid distillate (PFAD) and spent bleaching earth (SBE). These by-products, generated
from neutralization, deodorization and bleaching processes, are viable feedstocks to other commercial
industries such as animal feed, biodiesel, lubricant and soap. The case study is formulated as Mixed Integer
Linear Programming (MILP) and integrated into the framework with the objective to maximize the
refinery’s profit as well as moving towards a conscious mindset of zero waste. This is the first time that
such framework is developed and applied for the palm oil industry. The framework is called as Industry
to Industry By-products Exchange Network (I2IBEN). An illustrative case study demonstrates a significant
potential profit of MYR182, 893 per month.