Implementation of a Multi-Objective Working Capital Management Strategy for Financial Supply Chains

Authors

  • Mariia Smirnova St. Petersburg State University, 7/9 Universitetskaya nab., Saint Petersburg 199034, Russia
  • Anastasiia Ivakina St. Petersburg State University, 7/9 Universitetskaya nab., Saint Petersburg 199034, Russia
  • Nikolay Zenkevich St. Petersburg State University, 7/9 Universitetskaya nab., Saint Petersburg 199034, Russia

DOI:

https://doi.org/10.21638/11701/spbu31.2021.23

Abstract

The issue of adequate application of quantitative supply chain (SCF) solutions for cooperative working capital management becomes more and more important in terms of globalization and growing competition between supply chains (SCs). Authors address the problem by developing models for cooperative working capital management (WCM) through SCF adoption for the case of the three-stage supply chain. The grounding for the optimization is multicriteria approach. The multi-objective working capital optimization model (Ivakina et al., 2021) allows to find optimal solution regardless initial financial and liquidity position of SC. In the article, we use this model to quantitatively implement a multi-objective working capital management strategy on the cases of real supply chains. The results obtained in the paper indicate that the model of working capital optimization with concurrent use of multiple supply chain finance solutions can provide an optimal solution for all the cases considered in the research. It allows to decrease the total financial costs on working capital and supply chain finance solutions making individual ones not worse and at the same time achieve greater liquidity.

Keywords:

working capital management, supply chain finance solutions, inventory financing, reverse factoring, goal programming, multi-objective optimization, base model of multi-objective working capital optimization

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Published

2021-10-30

How to Cite

Smirnova, M., Ivakina, A., & Zenkevich, N. (2021). Implementation of a Multi-Objective Working Capital Management Strategy for Financial Supply Chains. Contributions to Game Theory and Management, 14, 312–328. https://doi.org/10.21638/11701/spbu31.2021.23

Issue

Vol. 14 (2021)

Section

Articles

License

Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.

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