Dynamic and reactive optimization of physical and financial flows in the supply chain
- 1 January 2020
- journal article
- research article
- Published by Growing Science in International Journal of Industrial Engineering Computations
- Vol. 11 (1), 83-106
- https://doi.org/10.5267/j.ijiec.2019.6.003
Abstract
This article presents a new approach to address the problem of joint planning of physical and financial flows. The main contribution of this work is that it integrates supply chain contracts and also focuses on supply chain tactical planning in an uncertain and disrupted environment, taking into account budgetary and contractual constraints. In order to minimize the effect of disturbances due to existing uncertainties, a planning model is developed and implemented on a rolling horizon basis. The goal is to seek the best compromise between the available decision-making levers linked with physical and financial flows by adopting a dynamic process that allows for data update at each planning stage. The results of the implemented approach are analysed to highlight the benefits incurred by the inter-firm collaboration in terms of operational performance and working capital (WC) of the supply chain. Our approach represents a basis for negotiation with the suppliers in order to yield a possibly shared profit. (C) 2020 by the authors; licensee Growing Science, CanadaKeywords
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