Optimal design of batch‐storage network with financial transactions and cash flows

Abstract

An integrated analysis of production and financing decisions is presented. A model is constructed in which a cash storage unit is installed to

Optimal design of multiperiod batch‐storage network including transportation processes

“…Corporate income tax is usually proportional to the gross profit and, thus, without loss of generality, is described as a payment to a fictitious stockholder o 2 O. We ignore the effects of temporary financial investments, bank loans, sales tax, and labor costs, which were treated in the previous study, 4,5,10 for simplicity. The currency flows (CF) entering the currency storage r are as follows:…”

“…All terms in the modified multiperiod planning model are linear or nonlinear but separable. Separable terms can be linearized using separable programming techniques, 4 and, therefore, the model falls in the category of mixed integer linear programs. The unique feature of the multiperiod planning model is the square roots of the average flow rates in the objective function.…”

“…BSN can account for most supply chain components, for example the purchase of raw materials, production, transportation, and demand for the finished product. The periodic square wave (PSW) model has been used successfully to find analytical solutions for a variety of supply chain systems, including a parallel system with batch processes and storage units, 1 a sequential multistage BSN, 2 a nonsequential BSN including recycling streams, 3 a BSN supported by financial transactions and cash flows, 4,5 multitasking semi-continuous processes in a BSN, 6 a BSN that considers uncertainty and waste streams, 7,8 a multisite BSN, 9 and a BSN that includes the effects of exchange rates and taxes on a multinational corporation (MNC). 5,10 Additional Supporting Information may be found in the online version of this article.…”

Optimal design of batch‐storage network with uncertainty and waste treatments

“…36 is a separable concave function and can be linearized in a piecewise process by using the specially ordered sets (SOS) formulation. 14 The noncontinuous term can be replaced with a linear variable by adding the following inequality constraints:…”

“…A deterministic model to account for financial transactions and cash flows based on the PSW model has been developed. 14 This model in this study can be used to handle long-term price changes; short-term random price changes are neglected in the present work, but will be explored in future research. Note that the processes in the batch-storage network not only are restricted to batch processes but also are extended to semicontinuous and transportation processes.…”