A system dynamics model of financial flow in supply chains: a case study
RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 1, pp. 187-204

Voir la notice de l'article provenant de la source Numdam

The article discusses the operational and financial relationships among the channel members of a supply chain comprising of a manufacturing company and a distributor. This research simulates the financial system that enables a more accurate diagnosis of disaggregated metrics “Cash to Cash”, considering different interactions between material flow and the financial flow of the two links, manufacturer and distributor. This model considers the feedback loops between material flow models and financial models without which some interactions are lost during simulation. The proposed diagnostic method which incorporates an eclectic process re-engineering practices and state of the art of dynamic simulation with the implementation of advanced techniques of sensitivity and dynamic optimization models those are applied on the concept of stocks and flows. This methodology is used in order to analyze and improve business strategies by generating policies which help to improve cash flow of the company. To validate our model, a case study illustrating the improvement of different metrics of the supply chain is considered here. The results show that the companies have to invest in technology in order to generated strategic decision to enhance their financial metrics.

DOI : 10.1051/ro/2017025
Classification : 90B05, 91G80, 90B50
Keywords: Cash flow, systems dynamics, supply chain

Sana, Shib Sankar 1 ; Ferro-Correa, Jose 1 ; Quintero, Andres 1 ; Amaya, Rene 1

1
@article{RO_2018__52_1_187_0,
     author = {Sana, Shib Sankar and Ferro-Correa, Jose and Quintero, Andres and Amaya, Rene},
     title = {A system dynamics model of financial flow in supply chains: a case study},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
     pages = {187--204},
     publisher = {EDP-Sciences},
     volume = {52},
     number = {1},
     year = {2018},
     doi = {10.1051/ro/2017025},
     mrnumber = {3812476},
     zbl = {1394.90044},
     language = {en},
     url = {http://geodesic.mathdoc.fr/articles/10.1051/ro/2017025/}
}
TY  - JOUR
AU  - Sana, Shib Sankar
AU  - Ferro-Correa, Jose
AU  - Quintero, Andres
AU  - Amaya, Rene
TI  - A system dynamics model of financial flow in supply chains: a case study
JO  - RAIRO - Operations Research - Recherche Opérationnelle
PY  - 2018
SP  - 187
EP  - 204
VL  - 52
IS  - 1
PB  - EDP-Sciences
UR  - http://geodesic.mathdoc.fr/articles/10.1051/ro/2017025/
DO  - 10.1051/ro/2017025
LA  - en
ID  - RO_2018__52_1_187_0
ER  - 
%0 Journal Article
%A Sana, Shib Sankar
%A Ferro-Correa, Jose
%A Quintero, Andres
%A Amaya, Rene
%T A system dynamics model of financial flow in supply chains: a case study
%J RAIRO - Operations Research - Recherche Opérationnelle
%D 2018
%P 187-204
%V 52
%N 1
%I EDP-Sciences
%U http://geodesic.mathdoc.fr/articles/10.1051/ro/2017025/
%R 10.1051/ro/2017025
%G en
%F RO_2018__52_1_187_0
Sana, Shib Sankar; Ferro-Correa, Jose; Quintero, Andres; Amaya, Rene. A system dynamics model of financial flow in supply chains: a case study. RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 1, pp. 187-204. doi: 10.1051/ro/2017025

Cité par Sources :