Integration of Sale and Leaseback in the Optimal Design of Multi-Echelon Supply Chain Networks

Research on integrated supply chain network (SCN) design models that capture financial matters is still in its infancy. However, as SCN managers require holistic decision support models that quantify the financial impact of their production and distribution decisions, this research stream is likely to become a mainstream. This paper aims to enrich the relevant literature by providing a mixed integer non linear programming (MINLP) SCN design model that incorporates the sale and leaseback (SLB), a method that releases the value of real estate, improves balance sheet, and realises tax benefits. The model will assist SCN managers in strategic decision making during a capital budgeting process.