Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector
A crucial role in the continuation of economic activities is played by the financing of services and production in supply chains. A key element of optimizing the financial flow of these complex networks is to pay attention to the financial aspects of these complex networks since they are becoming mo...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-10-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/11/19/4188 |
| _version_ | 1797575523095805952 |
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| author | Mojtaba Azizian Mohammad Mehdi Sepehri Seyed Mohammad Javad Mirzapour Al-e-Hashem |
| author_facet | Mojtaba Azizian Mohammad Mehdi Sepehri Seyed Mohammad Javad Mirzapour Al-e-Hashem |
| author_sort | Mojtaba Azizian |
| collection | DOAJ |
| description | A crucial role in the continuation of economic activities is played by the financing of services and production in supply chains. A key element of optimizing the financial flow of these complex networks is to pay attention to the financial aspects of these complex networks since they are becoming more and more complex and expanding. This study aims to investigate the supply chain of a pharmaceutical company’s holding company and its subsidiaries while using internal resource valuation to develop a new strategy for financing the company’s operations. There is a process of money circulation through the chain, which consists of passing through two treasuries (primary and secondary), which provide liquidity to compensate the deficits of some institutions with the excess liquidity of other institutions. In this article, we present three simulation-based models based on a case study conducted at Shafa Darou Investment Company in Tehran-Iran, a leading pharmaceutical investment company in the country, to examine the impact of implementing this idea in the real world. Considering the study’s results, it has been shown that the supply chain as a whole has improved in terms of its working capital. Using a set of local treasuries is generally associated with reducing risks and a greater level of stability when relying on the excess liquidity of chain members provided that financial independence from external institutions, such as banks, is maintained. In addition, if the members’ excess liquidity is deposited in a set of local treasuries rather than a bank, the profit and internal financial flow within the chain will be circulated throughout the chain, and more added value will be generated. |
| first_indexed | 2024-03-10T21:39:49Z |
| format | Article |
| id | doaj.art-6d7e1c4c08594a64b1b82f29dd89bd3d |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T21:39:49Z |
| publishDate | 2023-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-6d7e1c4c08594a64b1b82f29dd89bd3d2023-11-19T14:44:33ZengMDPI AGMathematics2227-73902023-10-011119418810.3390/math11194188Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy SectorMojtaba Azizian0Mohammad Mehdi Sepehri1Seyed Mohammad Javad Mirzapour Al-e-Hashem2Faculty of Industrial and Systems Engineering, Tarbiat Modares University, Tehran 1411713116, IranFaculty of Industrial and Systems Engineering, Tarbiat Modares University, Tehran 1411713116, IranRennes School of Business, 2 Rue Robert d’Arbrissel, 35065 Rennes, FranceA crucial role in the continuation of economic activities is played by the financing of services and production in supply chains. A key element of optimizing the financial flow of these complex networks is to pay attention to the financial aspects of these complex networks since they are becoming more and more complex and expanding. This study aims to investigate the supply chain of a pharmaceutical company’s holding company and its subsidiaries while using internal resource valuation to develop a new strategy for financing the company’s operations. There is a process of money circulation through the chain, which consists of passing through two treasuries (primary and secondary), which provide liquidity to compensate the deficits of some institutions with the excess liquidity of other institutions. In this article, we present three simulation-based models based on a case study conducted at Shafa Darou Investment Company in Tehran-Iran, a leading pharmaceutical investment company in the country, to examine the impact of implementing this idea in the real world. Considering the study’s results, it has been shown that the supply chain as a whole has improved in terms of its working capital. Using a set of local treasuries is generally associated with reducing risks and a greater level of stability when relying on the excess liquidity of chain members provided that financial independence from external institutions, such as banks, is maintained. In addition, if the members’ excess liquidity is deposited in a set of local treasuries rather than a bank, the profit and internal financial flow within the chain will be circulated throughout the chain, and more added value will be generated.https://www.mdpi.com/2227-7390/11/19/4188supply chain financesimulationlocal treasuryinternal financingpharmaceutical industry |
| spellingShingle | Mojtaba Azizian Mohammad Mehdi Sepehri Seyed Mohammad Javad Mirzapour Al-e-Hashem Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector Mathematics supply chain finance simulation local treasury internal financing pharmaceutical industry |
| title | Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector |
| title_full | Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector |
| title_fullStr | Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector |
| title_full_unstemmed | Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector |
| title_short | Simulation-Based Models of Multi-Tier Financial Supply Chain Management Problem: Application in the Pharmacy Sector |
| title_sort | simulation based models of multi tier financial supply chain management problem application in the pharmacy sector |
| topic | supply chain finance simulation local treasury internal financing pharmaceutical industry |
| url | https://www.mdpi.com/2227-7390/11/19/4188 |
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