Economic Evaluation: Analysed Models

Published: 7 January 2022| Version 1 | DOI: 10.17632/fbm4pf64k2.1


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.



Universite Mohammed VI Polytechnique


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