Supply chain finance : a conceptual framework to advance research Supply Chain Finance A conceptual framework to advance research Supply Chain Finance A conceptual framework to advance research Supply Chain Finance A conceptual framework to advance resear

Abstract Supply Chain Finance (SCF) arrangements aim to add value by taking a cooperative approach to financing in the supply chain. SCF has recently enjoyed considerable attention from industry, and providers of capital and technology are investing in platforms to facilitate new applications. A limited number of theoretical and empirical studies on the topic have been published. Current trends suggest, however, that the landscape of SCF is becoming increasingly complex and diverse. We describe some key developments and their implications for firms that (may) implement an SCF arrangement. In particular, we show that strategic and tactical considerations may impact the value of these arrangements. Failure to recognize alternatives and associated trade-offs may entail missed opportunities for firms. We present a framework that positions SCF concepts and shows the need for further research. We conclude with observations on managerial relevance

Capital renewal as a real option

We consider the timing of replacement of obsolete subsystems within an extensive, complex infrastructure. Such replacement action, known as capital renewal, must balance uncertainty about future profitability against uncertainty about future renewal costs. Treating renewal investments as real options, we derive an optimal solution to the infinite horizon version of this problem and determine the total present value of an institution's capital renewal options. We investigate the sensitivity of the infinite horizon solution to variations in key problem parameters and highlight the system scenarios in which timely renewal activity is most profitable. For finite horizon renewal planning, we show that our solution performs better than a policy of constant periodic renewals if more than two renewal cycles are completed.Investment analysis Maintenance Replacement Facilities planning and design Simulation