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Dynamic Discounting and Flexible Invoices Payment Scheduling for Supply Chain Financial Performance Optimization

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Artificial Intelligence, Data Science and Applications (ICAISE 2023)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 838))

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Abstract

The financial supply chain involves the flow of cash through the physical network. These financial flows still function as they have done over the last thirty years. The management of financial flows is complex because the delivery or receipt of a product or service does not necessarily give rise to immediate collection or disbursement. This delay in synchronisation has a significant impact on working capital and forces companies to seek almost the same visibility in their financial flows as in their physical flows. Different supply chain strategies can be used to improve working capital. Companies can either manage their inventories more efficiently, reduce DSO (Days Sales Outstanding) and customer payment terms, or increase DPO (Days Sales Outstanding) by paying suppliers on later terms. In this paper we address the problem of scheduling invoice payments to improve working capital performance. We model the problem using a GA and develop a metaheuristic to solve it by conducting an experimental analysis.

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Author information

Authors and Affiliations

  1. Department of Economic Sciences, University of Moulay Ismail, Polydisciplinary Faculty of Errachidia, Meknes, Morocco

    Halima Semaa, Laila Bouzarra & Mohamed Ait Hou

  2. Faculty of Science and Techniques, Hassan 1Er University, Settat, Morocco

    Youssef Malhouni

  3. Ibn Tofail University, Kenitra, Morocco

    Abdelillah Semma

Authors
  1. Halima Semaa
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  2. Youssef Malhouni
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  3. Abdelillah Semma
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  4. Laila Bouzarra
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  5. Mohamed Ait Hou
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Corresponding author

Correspondence to Halima Semaa .

Editor information

Editors and Affiliations

  1. Department of Computer Science, Moulay Ismail University, Errachidia, Morocco

    Yousef Farhaoui

  2. Centre of AI and Robotics, Napier University, Edinburgh, UK

    Amir Hussain

  3. Prince Sultan University, Riyadh, Saudi Arabia

    Tanzila Saba

  4. University Canada West, Vancouver, BC, Canada

    Hamed Taherdoost

  5. Institute of Science, Banaras Hindu University, Varanasi, India

    Anshul Verma

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Semaa, H., Malhouni, Y., Semma, A., Bouzarra, L., Ait Hou, M. (2024). Dynamic Discounting and Flexible Invoices Payment Scheduling for Supply Chain Financial Performance Optimization. In: Farhaoui, Y., Hussain, A., Saba, T., Taherdoost, H., Verma, A. (eds) Artificial Intelligence, Data Science and Applications. ICAISE 2023. Lecture Notes in Networks and Systems, vol 838. Springer, Cham. https://doi.org/10.1007/978-3-031-48573-2_83

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