Integration of financial issues in the optimal design of supply chain networks

Abstract

Financial issues among the most advanced and emerging modelling aspects within recent supply chain networks (SCNs). As a result of diminishing profit margins and competitive landscape SCN by taking into account not only cost key performance indexes but also financial performance figures. Consequently, SCN managers are in the need of holistic decision support models that track and quality the financial impact of their production and distribution decision by integrating various financial performance and financial attractiveness modelling frameworks. Integration of these frameworks in SCN models allow for the systematic assessment of the impact of production and distribution decisions in the financial performance and in the financial attractiveness and further selects their ideal combination thus providing a competitive advantage. Moreover, this integration bridges the gap and conflicts of interests between SCN managers and promotes constructive cooperation between them. As the final acceptance of an investment project is mainly decided by financial figures and indexes and making clear to these managers the effect of this project on financial performance and attractiveness, has more possibilities to be accepted. This Thesis considers the development of SCN design models that integrate financial matters providing support to SCN managers in holistic decision making. In the first model a generic multi-echelon, multi-product, multi-period SCN design formulation is presented with time varying product demand uncertainty being its main novelty. Integration of financial statement analysis is the key feature of the second proposed SCN design model whereas credit solvency is the novel aspect of the third presented SCN design model. The key aspect of the last introduced SCN design model is the sale and leaseback of fixed assets technique.