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Modeling Supply Chain Network: A Need to Incorporate Financial Considerations

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Operational Research (IO 2018)

Abstract

In the past few years, important supply chain decisions have captured managerial interest. One of these decisions is the design of the supply chain network incorporating financial considerations, based on the idea that establishment and operating costs have a direct effect on the company’s financial performance. However, works on supply chain network design (SCND) incorporating financial decisions are scarce. In this work, we address a SCND problem in which operational and investment decisions are made in order to maximize the company value, measured by the Economic Value Added, while respecting the usual operational constraints, as well as financial ratios and constraints. This work extends current research by considering debt repayments and new capital entries as decision variables, improving on the calculation of some financial values, as well as introducing infrastructure dynamics; which together lead to greater value creation.

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Acknowledgements

We acknowledge the support of FEDER/COMPETE2020/NORTE2020/POCI/ PIDDAC/MCTES/FCT funds through grants PTDC/EEIAUT2933/2014 and 02/SAICT/2017-31821/ POCI-01-0145-FEDER-031821.

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Correspondence to Dalila B. M. M. Fontes .

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Appendix

Appendix

Fig. 2
figure 2

Network structure and used product flows for the second and third time period

Fig. 3
figure 3

Network structure and used product flows for the fourth time period

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Borges, A., Fontes, D.B.M.M., Gonçalves, J.F. (2019). Modeling Supply Chain Network: A Need to Incorporate Financial Considerations. In: Alves, M., Almeida, J., Oliveira, J., Pinto, A. (eds) Operational Research. IO 2018. Springer Proceedings in Mathematics & Statistics, vol 278. Springer, Cham. https://doi.org/10.1007/978-3-030-10731-4_5

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