Book Analysis: Supply Chain Finance
Attached is the screenshot of a book about finance for supply chain. Similar analyses are available in Classroom/ section 6.5. Below is the summary of this book.
  • Book Title: Supply Chain Finance Modelling and Optimization -Citation: Shaikh, A. A., Konstantaras, I., Ali, I., Taleizadeh, A. A., & Shah, N. H. (Eds.). (2024). Supply Chain Finance Modelling and Optimization. Springer.
  • Descriptive Title: Optimizing Supply Chains: Models & Finance
Key Points:
Keeping the Right Amount of Stock:
This book explains how companies decide how much merchandise to keep in their warehouses. It is very important because having too much stock costs money, but having too little means losing customers. The chapters use math to find the perfect balance so businesses can run smoothly and save cash.
Dealing with Items that Spoil :
Many products, like food or medicine, can rot or go bad if they sit on a shelf for too long. The text discusses special rules for these kinds of items. It suggests ways to sell them faster or invest in technology that keeps them fresh longer, ensuring less waste and more profit.
Delivering Goods Safely and Quickly:
Getting products to customers involves trucks and drivers. This book looks at how to plan delivery routes while following real laws, like speed limits and how many hours a driver can work. This helps companies deliver goods on time without breaking the law or tiring out their drivers.
Setting Prices in a Competitive World:
Companies often have to guess the best price for their goods to beat their rivals. The authors use a method called game theory to predict how competitors will react to price changes. This helps businesses set prices that attract customers while still making a good profit, whether selling in stores or online.
Selling Online versus In-Store:
Nowadays, many businesses sell things on the internet and in physical shops at the same time. The book explores how to manage these two different ways of selling so they work together instead of competing against each other. It helps managers decide if they should have different prices or policies for online shoppers.
Being Green and Sustainable Protecting the environment is a
Big topic for modern companies.
The text includes models that calculate the cost of carbon emissions and pollution. It encourages businesses to design their supply chains in a way that is good for the planet, such as using cleaner transport or organizing warehouses to use less energy.
Recycling and Returning Products:
The supply chain does not end when a customer buys something. Sometimes people return items, or used products need to be recycled. This book explains how to handle these returns efficiently. It looks at how to turn old products back into new value, which reduces waste and can create new ways to make money.
Managing Money and Credit:
Running a supply chain requires a lot of money. The chapters discuss how businesses handle loans and payments. For example, sometimes a supplier lets a store pay for goods later, which is like a small loan. The book uses math to show how these financial deals affect the decisions on how much inventory to buy and hold.
Real-World implications:
This research is incredibly useful for everyday retail managers and logistics coordinators. By using the strategies mentioned, a grocery store manager could significantly reduce the amount of food thrown away each week, directly increasing the store's earnings. Similarly, a trucking company could use the routing advice to plan schedules that keep drivers safe and avoid expensive fines, ensuring that deliveries arrive exactly when promised.
On a larger scale, these models help corporations become more environmentally friendly. Manufacturing plants can use the data on carbon emissions to change their production methods, lowering their pollution levels to meet government standards. This not only helps the environment but also improves the company's reputation with eco-conscious consumers who prefer to buy from green businesses.
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Dr. Spyros Giannelos
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Book Analysis: Supply Chain Finance
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