IDEAS home Printed from https://ideas.repec.org/a/ids/ijsoma/v10y2011i3p328-347.html
   My bibliography  Save this article

Interrelating operational and financial performance measurements in a multiproduct inventory system

Author

Listed:
  • Margarita Protopappa-Sieke
  • Ralf W. Seifert

Abstract

Financial supply chain management and working capital management are increasingly under the spotlight as effective approaches to optimising working capital levels and directing cash flows. Especially in a multiproduct environment, efficient working capital allocation can boost company performance, achieve significant cost savings and demonstrate risk-pooling benefits. In this paper, we focus on the interrelation of working capital and stocking decisions for functional, innovative and heterogeneous product portfolios. We analyse the effect of demand correlation, lead time, payment delays, portfolio sizes, and service level constraints for multiproduct portfolios. Due to the dynamic nature of working capital, we resort to simulation in order to derive managerial insights. Our results attest the importance of payment delays on the profitability of a company. In addition, we demonstrate risk-pooling benefits from a financial perspective.

Suggested Citation

  • Margarita Protopappa-Sieke & Ralf W. Seifert, 2011. "Interrelating operational and financial performance measurements in a multiproduct inventory system," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 10(3), pages 328-347.
  • Handle: RePEc:ids:ijsoma:v:10:y:2011:i:3:p:328-347
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=42925
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rohit Kapoor & Bhavin J. Shah, 2016. "Simulation model for closed loop repairable parts inventory system with service level performance measures," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 23(1), pages 18-42.
    2. Seifert, Ralf W. & Tancrez, Jean-Sébastien & Biçer, Işık, 2016. "Dynamic product portfolio management with life cycle considerations," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 71-83.
    3. Chakuu, Sumeer & Masi, Donato & Godsell, Janet, 2019. "Exploring the relationship between mechanisms, actors and instruments in supply chain finance: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 216(C), pages 35-53.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijsoma:v:10:y:2011:i:3:p:328-347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=150 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.