Integrated supply chain network planning and financial planning respecting the imperfection of the capital market
Martin Steinrücke () and
Wolfgang Albrecht ()
Additional contact information
Martin Steinrücke: University of Greifswald
Wolfgang Albrecht: University of Greifswald
Journal of Business Economics, 2018, vol. 88, issue 6, No 5, 799-825
Abstract:
Abstract Within supply chain networks, the integration of decisions regarding configuration, operations and financing is important to balance overall liquidity and to prevent insolvency. This applies in particular in case of a business take-over by an institutional investor, as the latter may formulate return expectations that require complete restructuring of processes. Motivated by the real-life case of a sanitary company in Germany that had to deal with the aforementioned situation, we develop a mixed-integer linear programming model that is able to coordinate planning during the investor’s engagement (limited to a specific number of years) with payouts that are structured according to his/her consumption preferences. As the investor’s scope of action is characterized by alternatives that additionally include financial investments and financings with different transaction-specific interest rates, it stands to base modeling on the premises of imperfect capital markets. The underlying coherent theory is applied to the integrated supply chain network planning and financial planning after a business take-over for the first time. Besides the exemplary analysis of a four-stage supply chain with three suppliers, plants, warehouses and markets, a numerical analysis with other randomly generated network structures is used for the validation of the model formulation. As a result, all considered instances could be solved to optimality in acceptable computation times using high-performance hardware and software.
Keywords: Imperfect capital markets; Liquidity balancing; Cash flow series; Supply chain restructuring; Mixed-integer linear programming (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://link.springer.com/10.1007/s11573-017-0883-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:jbecon:v:88:y:2018:i:6:d:10.1007_s11573-017-0883-3
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11573
DOI: 10.1007/s11573-017-0883-3
Access Statistics for this article
Journal of Business Economics is currently edited by Günter Fandel
More articles in Journal of Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().