A new model for Physical flow optimization in the global automotive value chain (Case study: SIBA MOTOR Company)

Document Type : Research Paper


School of Progress Engineering, Iran University of Science & Technology, Tehran, Iran


Taking into account the economic capabilities, competitive advantages and environment dynamics, this research presents a new physical flow optimization model by considering payment period, time value of money and exchange rate fluctuations. Considering the actual circumstances of the current case study in the global value chain, a single-objective non-linear mathematical model is presented for the role of the SIBA MOTOR Company. Owing to the non-linear nature of the presented model, it has been linearized through a heuristic method. Next, by using GAMS software, the model is solved by considering the assumption of the case study. Finally, a sensitivity analysis is performed on important parameters after obtaining the numerical results to assess them. Appropriate potential location of the factory, inventory of each period, CKDs and CBUs flow of vehicles, the amount of tax and the customs expenses, and each payment method’s share, are some of the outputs of the model. The results of the proposed model are appropriate for the Iranian automotive companies to participate more actively in the global value chains of the automotive industry.


Main Subjects

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