Abstract
In today's competitive environment, businesses are searching for tools and instruments, using which they can reduce their costs as much as possible in order to increase profits. The supply chain as a process which requires comprehensive management can be a great help in this regard for companies. The majority of approaches evaluated in supply chain primarily deal with logistic and material flows and neglect a lot of financial dimensions. This is while the financial flow in the supply chain can play an effective role in improving and optimizing the chain and contribute heavily to the profitability of the business. This paper deals with the financial flow of the supply chain model along with the material flow. It indicates that while optimizing the financial flow will provide the maximum profit for the plant, through simultaneous modeling of both these flows, better results can be reached. On the other hand, optimizing the financial flow allows the financial factors to be also considered in the model, which helps the business reach higher profits and better management of financial processes, which in turn shifts the business towards a modern industrial unit.
Highlights
In the past, the diversity and the number of goods and services were more limited and the distance between the manufacturers and the consumers was much shorter
This study evaluates two main flows in the supply chain which influence the profitability of any company and models these two flows in an integrated method
The innovativeness of the current study can be the consideration of financial factors such as interest rate, accounts receivable, borrowing loans, and short-term and long-term assets and liabilities as variables and the consideration of changes in the equity as the target function
Summary
The diversity and the number of goods and services were more limited and the distance between the manufacturers and the consumers was much shorter. The distribution of goods was not considered to be a very important issue; the retailers were able to acquire the goods they needed. Nowadays, with the increase in the diversity of goods, the increase in the number of consumers and their distance from the manufacturers, the importance of dealing with a proper manufacturing and distribution system has soared. The reviewing process of this paper was handled by Associate Editors A. (Nima) Mirzazadeh, Kharazmi University, Tehran, Iran and Gerhard-Wilhelm Weber, Middle East Technical University, Ankara, Turkey. This paper was for the occasion of The 12th International Conference on Industrial Engineering (ICIE 2016), which was held in Tehran, Iran during 25-26 January, 2016
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
