Simultaneous investment, operations, and financial planning in supply chains: A value-based optimization approach

G.J. Hahn and H. Kuhn

International Journal of Production Economics, 2012, vol. 140, issue 2, 559-569

Abstract: Asset utilization is a major mid-term lever to increase shareholder value creation. Since rough-cut planning of capacity (dis-)investments is performed at the long-term level, detailed timing of adjustments remains for the mid-term level. In combination with capacity control measures, capacity adjustment timing can be used to optimize asset utilization. This paper provides a corresponding framework for value-based performance and risk optimization in supply chains covering investment, operations, and financial planning simultaneously. We illustrate the benefits of the approach using a case-oriented example, and highlight the value of using flexible capacity options and postponing of capacity-related decisions in an uncertain environment.

Keywords: Capacity planning; Sales and operations planning; Robust optimization; Value-based management; Performance and risk management (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:140:y:2012:i:2:p:559-569

DOI: 10.1016/j.ijpe.2012.02.018

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