Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain
Purpose – The purpose of this report was to evaluate the effectiveness and practicality of system dynamics modeling in integrating econometric equations to describe the effects of supply chain material and information delays on pricing decisions and consequent financial results in an animal feed exp...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-09-01
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| Series: | European Journal of Management Studies |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/EJMS-05-2021-0042/full/pdf |
| _version_ | 1797791154946703360 |
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| author | Marcos Fraiha |
| author_facet | Marcos Fraiha |
| author_sort | Marcos Fraiha |
| collection | DOAJ |
| description | Purpose – The purpose of this report was to evaluate the effectiveness and practicality of system dynamics modeling in integrating econometric equations to describe the effects of supply chain material and information delays on pricing decisions and consequent financial results in an animal feed export business. Design/methodology/approach – An empirical dynamic model, loaded with econometric theory of price effect on competitive demand, was used to describe the input data. Findings – The model simulation outputs proved themselves relevant in analyzing the complex interconnections of multiple variables affecting the profitability in a commercial routine, supporting the decision process among sales managers. The impact of information delay on price decisions and business financial results were estimated using the model proposed. Originality/value – This paper describes an empirical model, based on system dynamics, that predicts operating contribution margins and cash conversion cycles based on estimation of information and material delays in a supply chain. The method is pragmatic and simple for business routine implementation. |
| first_indexed | 2024-03-13T02:15:49Z |
| format | Article |
| id | doaj.art-30e332ea374b49dbb6d4702fc16e57de |
| institution | Directory Open Access Journal |
| issn | 2183-4172 2635-2648 |
| language | English |
| last_indexed | 2024-03-13T02:15:49Z |
| publishDate | 2022-09-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | European Journal of Management Studies |
| spelling | doaj.art-30e332ea374b49dbb6d4702fc16e57de2023-06-30T14:31:42ZengEmerald PublishingEuropean Journal of Management Studies2183-41722635-26482022-09-01271617310.1108/EJMS-05-2021-0042Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chainMarcos Fraiha0Hifeed, Trouw Nutrition International BV, Boxmeer, The NetherlandsPurpose – The purpose of this report was to evaluate the effectiveness and practicality of system dynamics modeling in integrating econometric equations to describe the effects of supply chain material and information delays on pricing decisions and consequent financial results in an animal feed export business. Design/methodology/approach – An empirical dynamic model, loaded with econometric theory of price effect on competitive demand, was used to describe the input data. Findings – The model simulation outputs proved themselves relevant in analyzing the complex interconnections of multiple variables affecting the profitability in a commercial routine, supporting the decision process among sales managers. The impact of information delay on price decisions and business financial results were estimated using the model proposed. Originality/value – This paper describes an empirical model, based on system dynamics, that predicts operating contribution margins and cash conversion cycles based on estimation of information and material delays in a supply chain. The method is pragmatic and simple for business routine implementation.https://www.emerald.com/insight/content/doi/10.1108/EJMS-05-2021-0042/full/pdfInformation delayPriceContribution marginSupply chainFeed industry |
| spellingShingle | Marcos Fraiha Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain European Journal of Management Studies Information delay Price Contribution margin Supply chain Feed industry |
| title | Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain |
| title_full | Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain |
| title_fullStr | Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain |
| title_full_unstemmed | Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain |
| title_short | Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain |
| title_sort | information and material delays effect on price setting operating contribution margins and cash conversion cycles in feed ingredients supply chain |
| topic | Information delay Price Contribution margin Supply chain Feed industry |
| url | https://www.emerald.com/insight/content/doi/10.1108/EJMS-05-2021-0042/full/pdf |
| work_keys_str_mv | AT marcosfraiha informationandmaterialdelayseffectonpricesettingoperatingcontributionmarginsandcashconversioncyclesinfeedingredientssupplychain |