Optimal cash flow and operational planning in a company supply chain

Abstract

The current paper shows the links and impact between physical flow and financial flow during the tactical planning process in a company supply chain. The target is to obtain optimal solutions during process operations preserving stock level, liquidity and satisfying customers. The proposed formalization combines a deterministic cash flow management model with a schedule management model using a mixed integer linear program (MILP) formulation. The benefits of this work are shown through a case study that illustrates the operational problem, modelled flows and necessary constraints to help high-level staff during operational planning and financial activities.

Keywords:

• Cash flow
• Operational planning
• Supply chain management
• MILP formulation; Heuristic

Acknowledgements

We thank the General Direction of Technologies, Research and the Energy (Ministry for the ‘Région Wallonne’ - Belgium), which supports and finances the project MAUTOSIM.