Title: A method and application for investment evaluation of supply chains in paper industry

Authors: Hanne Vuorenmaa, Petri Helo

Addresses: Logistics Systems Research Group, University of Vaasa, Industrial Management, P.O. Box 700, FIN-65101 Vaasa, Finland. ' Logistics Systems Research Group, University of Vaasa, Industrial Management, P.O. Box 700, FIN-65101 Vaasa, Finland

Abstract: This paper introduces a method for investment decision making in the supply chain environment. After introduction and overview of theories a case study analyses paper supply chain operations. As a result, this paper introduces a method for investment decision making in supply chain level. A method is validated with case of material-handling investment in paper supply chain. The promising results have been achieved. This paper proves that investment may be profitable in supply chain level even if it is not profitable for every individual organisation. Pilot case and the literature review show that over-organisational customer-focused investment calculation applications are needed.

Keywords: investment evaluation; SCM; supply chain management; cost–benefit analysis; paper industry; decision making; material-handling; profitability; over-organisational calculations; customer-focused calculations; Finland; paper mills; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2011.037417

International Journal of Logistics Systems and Management, 2011 Vol.8 No.1, pp.19 - 46

Published online: 30 Apr 2015 *

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