Title: Tactical planning for optimal cash flow and value sharing in supply chain

Authors: Michael Comelli, Pierre Fenies, David Lemoine

Addresses: LIMOS UMR 6158, Campus de Cezeaux, 63173 Aubiere, France. ' LIMOS UMR 6158, Campus de Cezeaux, 63173 Aubiere, France. ' LIMOS UMR 6158, Campus de Cezeaux, 63173 Aubiere, France

Abstract: In this paper, we discuss optimisation of cash flow and value sharing in the context of supply chain planning. Based on the previous work of (Comelli et al., 2007), a generic objective function which allows cash flow optimisation is presented. It could be adapted to any Supply Chain planning model by using links between physical and financial flow. A mathematical model is also given: its aim is to share the cash flow created by the whole Supply Chain among the partners thanks to transfer pricing. Then, a framework composed with a linking between tactical planning model and the latter, is presented. Finally, a real case study is given to illustrate our approach.

Keywords: tactical planning; supply chain management; SCM; cash flow; value sharing MILP; supply chain planning; optimisation; mathematical modelling; transfer pricing.

DOI: 10.1504/IJLSM.2009.022500

International Journal of Logistics Systems and Management, 2009 Vol.5 No.3/4, pp.323 - 343

Available online: 10 Jan 2009 *

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