A Mathematical Model to Integrate Cash Flow and Inventory Management in a Supply Chain

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Ghahghaei Nezamabadi, Farzane | 2017

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 49585 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Najafi, Mahdi
Abstract:
Most companies, especially small and new ones, operational decisions effect internal capital and the ability to earn capital. However, most articles have been focused on dynamic inventory control, ignored financing and fiscal policy. An important question can be raised is how internal capital constraints and partial trade credit can be affected company optimal inventory and fiscal policy. In this study tried to develop a model for internal cash flow and inventory management and define ordering policy with cash flow constraint and partial trade credit. The retailer can use its own capital or a loan to buy products. Also, he can invest his extra cash in a bank. The retailer’s ultimate goal is to get the maximum expected value of wealth at the end of his plan Horizon. Initially, the stochastic programming is used to determine optimal inventory policy; but is preferred to determine optimal inventory policy by the dynamic programming approach. Because the stochastic programming leads too many variables and scenarios and makes the problem complicated
Keywords:
Inventory Control ; Stochastic Programming ; Dynamic Programming ; Finance ; Liquidity Management ; Goods Supply Chain Management ; Capital Constrained ; Partial Trade Credit

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