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A combined financial and physical flows evaluation for logistic process and tactical production planning: Application in a company supply chain


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  • Comelli, Mickael
  • Féniès, Pierre
  • Tchernev, Nikolay
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    This paper proposes an approach to evaluate tactical production planning in supply chains. The production panning evaluation is usually based on physical parameters (stock level, demand satisfaction, etc.). Adding financial evaluation to classical evaluation could be relevant. This paper proposes to implement Activity Based Costing (ABC), cost drivers, and payment terms in order to estimate cash flow created by supply chain tactical production planning. Links between financial and physical flow are done by the evaluation of production planning impact on indirect cost. This evaluation is made using logistic process activities. This kind of cost model could be integrated in supply chain software like advanced planning and scheduling (APS) tools. An application of this type of evaluation is done on a real industrial case study.

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    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 112 (2008)
    Issue (Month): 1 (March)
    Pages: 77-95

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    Handle: RePEc:eee:proeco:v:112:y:2008:i:1:p:77-95

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    Cited by:
    1. Tsai, Wen-Hsien & Lai, Chien-Wen & Tseng, Li-Jung & Chou, Wen-Chin, 2008. "Embedding management discretionary power into an ABC model for a joint products mix decision," International Journal of Production Economics, Elsevier, vol. 115(1), pages 210-220, September.
    2. Estampe, Dominique & Lamouri, Samir & Paris, Jean-Luc & Brahim-Djelloul, Sakina, 2013. "A framework for analysing supply chain performance evaluation models," International Journal of Production Economics, Elsevier, vol. 142(2), pages 247-258.
    3. Tsai, Chih-Yang, 2011. "On delineating supply chain cash flow under collectionrisk," International Journal of Production Economics, Elsevier, vol. 129(1), pages 186-194, January.
    4. Askarany, Davood & Yazdifar, Hassan & Askary, Saeed, 2010. "Supply chain management, activity-based costing and organisational factors," International Journal of Production Economics, Elsevier, vol. 127(2), pages 238-248, October.


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