Abstract

Models that aim to optimize the design of supply chain networks have become a mainstream in the supply chain literature. This paper aims to fill a gap in the literature by introducing a mathematical model that integrates financial considerations with supply chain design decisions under demand uncertainty. The proposed Mixed-Integer Linear Programming (MILP) problem enchases financial statement analysis through financial ratios and demand uncertainty through scenario analysis. The applicability of the model is illustrated by using a case study along with a sensitivity analysis on financial parameters expressing the business environment. The model could be used as an effective and convenient strategic decision tool by supply chain managers.

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