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Integration of financial statement analysis in the optimal design of supply chain networks under demand uncertainty

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  • Longinidis, Pantelis
  • Georgiadis, Michael C.

Abstract

Models that aim to optimize the design of supply chain networks have become a mainstream in the supply chain literature. This paper aims to fill a gap in the literature by introducing a mathematical model that integrates financial considerations with supply chain design decisions under demand uncertainty. The proposed Mixed-Integer Linear Programming (MILP) problem enchases financial statement analysis through financial ratios and demand uncertainty through scenario analysis. The applicability of the model is illustrated by using a case study along with a sensitivity analysis on financial parameters expressing the business environment. The model could be used as an effective and convenient strategic decision tool by supply chain managers.

Suggested Citation

  • Longinidis, Pantelis & Georgiadis, Michael C., 2011. "Integration of financial statement analysis in the optimal design of supply chain networks under demand uncertainty," International Journal of Production Economics, Elsevier, vol. 129(2), pages 262-276, February.
    • Handle: RePEc:eee:proeco:v:129:y:2011:i:2:p:262-276
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    References listed on IDEAS

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