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When a model objective function is based on an economic criterion, the used economic evaluation should be bespoke for the characteristics of the studied decisions. A discrepancy between the physical model hypotheses and economic evaluation hypotheses may invalid the solution provided by the model. This work aims to highlight some methodological issues related to the use of economic evaluation in decision models. It relies on a critical review of 12 selected articles. We show the extent to which authors of models in supply chain and operations management explain the economic evaluation used in their models and how these methodological issues may lead to the invalidity of the solution. This work intends to invite authors and supply chain professionals to pay more attention when they use costs in their models. This file includes the analysis detail of the reviewed 12 models. It is constructed of four sheets obtained according to the grid attributes of our methodology. Each sheet deals with a strategic, tactical, and operational model. The first sheet concerns models applied to fictitious systems in certain environment, the second sheet concerns models applied to fictitious systems in stochastic environment, the third sheet concerns models applied to actual systems in certain environment and the fourth sheet concerns models applied to actual systems in stochastic environment. For each article, we present the objective of the model and we provide the details of its objective function: the states variables, the cost factors by which they are multiplied and the mobilized activity derivers.

Supply Chain Management, Operations Management, Decision Model, Economic Evaluation

Creative Commons Attribution 4.0 International

Decision models presented in Supply Chain (SC) and Operations Management articles are often based on an economic criterion to find the best possible solution. Thus, the solution's relevance depends on the significance of the cost information used. This paper aims to provide a set of methodological precautions for economic evaluation in decision models. It reviews 12 selected illustrative decision models to highlight the extent to which the authors justify and make explicit their economic functions. The paper explains that when cost information is not appropriate for the decisions under consideration, the solution provided by the model may be irrelevant. It highlights three methodological issues related to the causality of costs, their traceability and the consideration of opportunity costs. We conclude with methodological propositions for improving the relevance of economic evaluation in decision models.

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Supply Chain Management, Operations Management, Decision Model, Economic Evaluation

Creative Commons Attribution 4.0 International