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Modeling Supply Chain Network: A Need to Incorporate Financial Considerations

  • Alexandra Borges
  • Dalila B. M. M. FontesEmail author
  • José Fernando Gonçalves
Conference paper
Part of the Springer Proceedings in Mathematics & Statistics book series (PROMS, volume 278)

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.

Keywords

Supply chain network design problem (SCND) Financial considerations Value maximization 

Notes

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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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Alexandra Borges
    • 1
  • Dalila B. M. M. Fontes
    • 2
    Email author
  • José Fernando Gonçalves
    • 2
  1. 1.Faculdade de Economia da Universidade do Porto and Instituto Politécnico de Viana do CasteloViana do CasteloPortugal
  2. 2.Faculdade de Economia da Universidade do Porto and LIAAD/INESC TEC, Rua Dr. Roberto FriasPortoPortugal

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