Presenting an Integrated Value Based Supply Chain Model Considering Financial Ratios in Financial Decisions

Sustainable growth of share value of a company, regardless of financial flow and integration of financial decisions with other physical decisions, is not reachable. Value based supply chain management, attempts to make it possible through managing working capital, assets and debts. Decisions regarding assets management and financing has always been though decisions every company face. Such decisions, are affected by financial ratios which has not been considered in any optimization models. In this paper a mixed integer programming is presented to integrate financial and physical decisions in a multi echelon, multi period and multi commodity supply chain in order to maximize economic value added, as a most prevalent value metric. Financing through short term borrowing considering fulfillment of financial ratios as well as option of credit buy and sell along with pre sell and pre buy are the most important contributions. Problems with different sizes are solved in order to approve effectiveness of the proposed model. The effect of financial ratios variation and various buy and sell options on supply chain value are analyzed afterward.