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Issues related to flows of goods and information are frequently discussed in the logistics and Supply Chain Management literature. But, only few contributions are exploring the financial flows associated with supply chains. This article reviews the state-of-the-art of research regarding financial flows in supply chains. In doing so, it becomes apparent that an explicit examination and optimisation of the cost of capital has been missing so far. In order to close this gap, a conceptual framework and a mathematical model of “Supply Chain Finance” is proposed.
Pfohl et al. (Wed,) studied this question.