Integrating production and corporate financial planning for the short-term supply chain management.

GUILLÉN, GONZALO; BADELL, MARIANA; MELE, FERNANDO D.; PUIGJANER, LUIS

Vravrona, Grecia

Conferencia; International Conference on Computational Methods in Sciences and Engineering (ICCMSE 2004); 2004

European Society of Computational Methods in Science and Engineering.

In this work a novel approach for SCM is applied with the aim to improve the operation of SCs with embedded multi-product batch chemical plants. The main contribution of this work is that it includes a cash management model within the mathematical formulation, which gives as output, besides the maximization of the change in equity of the company, the budgetary guidelines for the planned period. Such consideration exhibits two main advantages with respect to previous approaches. In first place, it allows to check the feasibility of the resulting planning decisions from the financial viewpoint. In second place, it leads to better overall economic performance as the model properly evaluates the impact of financial expenses and profit derived from the SC making also the difference when considering the opportunity of investing the idle cash.