A combined financial and physical flows evaluation for logistic process and tactical production planning: Application in a company supply chain
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
- Gul, Ferdinand A., 2001. "Free cash flow, debt-monitoring and managers' LIFO/FIFO policy choice," Journal of Corporate Finance, Elsevier, vol. 7(4), pages 475-492, December.
- Boons, Arnick N. A. M., 1998. "Product costing for complex manufacturing systems," International Journal of Production Economics, Elsevier, vol. 55(3), pages 241-255, August.
- Schneeweiss, Ch., 1998. "On the applicability of activity based costing as a planning instrument," International Journal of Production Economics, Elsevier, vol. 54(3), pages 277-284, May.
- Salameh, M. K. & Abboud, N. E. & El-Kassar, A. N. & Ghattas, R. E., 2003. "Continuous review inventory model with delay in payments," International Journal of Production Economics, Elsevier, vol. 85(1), pages 91-95, July.
- Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
- Yair E. Orgler, 1969. "An Unequal-Period Model for Cash Management Decisions," Management Science, INFORMS, vol. 16(2), pages B77-B92, October.
- Spitter, J. M. & Hurkens, C. A. J. & de Kok, A. G. & Lenstra, J. K. & Negenman, E. G., 2005. "Linear programming models with planned lead times for supply chain operations planning," European Journal of Operational Research, Elsevier, vol. 163(3), pages 706-720, June.
- Brown, Ward & Haegler, Urs, 2004. "Financing constraints and inventories," European Economic Review, Elsevier, vol. 48(5), pages 1091-1123, October.
- Inderfurth, Karl & Schefer, Rainer, 1996. "Analysis of order-up-to-S inventory policies under cash flow market value maximization," International Journal of Production Economics, Elsevier, vol. 46(1), pages 323-338, December.
- Vidal, Carlos J. & Goetschalckx, Marc, 2001. "A global supply chain model with transfer pricing and transportation cost allocation," European Journal of Operational Research, Elsevier, vol. 129(1), pages 134-158, February.
- Peter J. Billington & John O. McClain & L. Joseph Thomas, 1983. "Mathematical Programming Approaches to Capacity-Constrained MRP Systems: Review, Formulation and Problem Reduction," Management Science, INFORMS, vol. 29(10), pages 1126-1141, October.
- Gnoni, M. G. & Iavagnilio, R. & Mossa, G. & Mummolo, G. & Di Leva, A., 2003. "Production planning of a multi-site manufacturing system by hybrid modelling: A case study from the automotive industry," International Journal of Production Economics, Elsevier, vol. 85(2), pages 251-262, August.
- Wang, Yung-Jang, 2002. "Liquidity management, operating performance, and corporate value: evidence from Japan and Taiwan," Journal of Multinational Financial Management, Elsevier, vol. 12(2), pages 159-169, April.
- Rink, David R. & Roden, Dianne M. & Fox, Harold W., 1999. "Financial management and planning with the product life cycle concept," Business Horizons, Elsevier, vol. 42(5), pages 65-72.
- Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
- Senechal, O. & Tahon, C., 1998. "A methodology for integrating economic criteria in design and production management decisions," International Journal of Production Economics, Elsevier, vol. 56(1), pages 557-574, September.
- Satoglu, Sule Itir & Durmusoglu, M. Bulent & Dogan, Ibrahim, 2006. "Evaluation of the conversion from central storage to decentralized storages in cellular manufacturing environments using activity-based costing," International Journal of Production Economics, Elsevier, vol. 103(2), pages 616-632, October.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:112:y:2008:i:1:p:77-95. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.