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ISSN : 1598-7248 (Print)
ISSN : 2234-6473 (Online)
Industrial Engineering & Management Systems Vol.17 No.1 pp.155-163
DOI : https://doi.org/10.7232/iems.2018.17.1.155

# Providing Financial Flow Management Strategies in Supply Chain Projects

Industrial Engineering, Qeshm International Branch, Islamic Azad University, Qeshm, Iran
Department of Industrial Engineering, Noshahr Branch, Islamic Azad University, Noshahr, Iran
Corresponding Author, rasoulkarimi2005@gmail.com
September 19, 2017 September 25, 2017 September 28, 2017

## ABSTRACT

Currently on the market in the country’s capital, cash flow strategy projects in oil, gas and petrochemical industry based on debt and capital instruments carried through. However, the definition instruments such as bonds, securities, leasing, bonds and other securities order in recent years in the capital market to some extent been able to manage the needs of this segment. Supply chain management strategies project actually includes measures that will lead to project supply chain challenges and goals of the project. The opportunity to create a supply chain with the lowest cost and most flexible provides. Given the importance of oil and gas industry as well as the importance of the strategic management of financial flows of the industry projects, in this study to provide financial flow management in supply chain management projects in oil projects in Hormozgan province are discussed. Hence, in the first step, identifying indicators and factors influencing financial flow management and to determine priorities and the effectiveness indices of Fuzzy DEMATEL been done. Then with the help of Fuzzy ANP method is to calculate the index weight.

## 1. INTRODUCTION

The supply chain includes all activities associated with the flow and transformation of goods and equipment from the raw material stage (mining) to delivery to the final consumer as well as the information flows associated with them. According to supply chain management projects, including those that affect the success of the project (Kung et al., 2011). Lack of awareness that may increase costs and delays in projects that reduce these negative effects through supply chain management, especially in industrial projects, oil and gas, according to the great design and the high cost of them can be an effective step prevent wasting financial resources, workers and time (Bonfill et al., 2008). The financial management of the supply chain there are usually three main challenges: cost, time and uncertainty. Although the chain design according to the business strategy and the competitive landscape of the industry carried and the outlook refers to the intensity of the relationship between physical flows, and financial information contain uncertainty, but mostly of the most important challenges facing organizations. Despite the uncertainty of cash flows in the supply chain incentive to save more money is to consider many short-term credit research in the supply chain (Swiderski et al., 2012). The financial supply chain management gives companies the ability to manage and optimize the supply chain strategy and finance cash flows adopt. Stability and liquidity at a low cost supply chain to reduce working capital requirements, capital cost operational costs (Abo-Sinna and Amer, 2005).

Energy, especially crude oil and natural gas are the most important productive inputs, along with other factors of production that are essential for economic growth and development. Extraction of these resources requires huge investments, because they are capital-intensive nature of the oil and gas industry in (Chang et al., 2013).

Obviously, project finance, oil and gas in Iran is not without challenges. In fact, one of the main challenges the private sector of the oil industry in recent years; who frequently forums active in this industry to the authorities. But less attention has problems managing cash flow is a problem due to lack of use of the professional group in big projects and the allocation of resources from the funds of the Bank and the Fund's currency reserves (National development) every year heavier burden this has (Fan et al., 2009). However, the past government debt to private contractors contributes to the problem and further reducing the ability of this sector has assumed many roles. The capital market by structural weaknesses that have failed due to the weakness of the private sector to support primary markets and result threads inability to compete with foreign contractors and first-class financial sector to participate in larger projects. Currently on the market in the country's capital, cash flow management projects in oil, gas and petrochemical industries based on debt and capital instruments is done through (Chien and Shih, 2007). However, the definition instruments such as bonds, securities, leasing, bonds and other securities order in recent years in the capital market to some extent been able to provide the needs of this sector. Experts believe that one of the challenges of financial flows oil and gas sector that due to high inflation in our country an appropriate return for the huge amount of capital is not defined and therefore, especially in recent years, some instruments such as bonds many fans attracted not (Chamodrakas et al., 2009). However, look at the performance of these papers indicate that the required resources management strategic oil and gas sector is difficult and requires a small portion of the device 400 billion dollar oil and gas sector in the first phase it provides. However, the definition for the oil and gas industry project fund capital market were also on the agenda, although still in its infancy (Fawcett and Waller, 2014). In this regard, some financial flow management strategies will be studied. Strategies such as finance, refinance, Usance, buyer credits, international loans, direct investment, indirect investment and trade are cross-examined (Wuttke et al., 2013). Project giant in the field of oil and gas fields supply management product with the weakness of many faces, in other words equipment and generally lack the right strategy to manage financial flows supply chain obstacles to finally achieve large-scale projects has become (Cronie and Sales, 2008). It can be said, in all the main areas of project management a key factor in determining the success or failure of projects is considered. Management of financial flows of the challenges of the oil and gas industry and mega-projects her body is, because providing timely financial resources and liquidity Annual 230 trillion Rials, the equivalent of $23 billion to projects in oil and gas industry which is quite significant work is not so simple. However, in the present circumstances the hands of managers to ensure liquidity is very close. The province has invested$ 7.6 billion in investment is critical as one of the centers (Dağdeviren et al., 2009). Given the importance of choosing the right strategy to manage financial flows in the supply chain of oil and gas and its effect on the performance of the supply chain management strategies to address the financing of projects have been working in the oil and gas supply chain is the essential. Unfortunately, due to lack of information and little figures cannot be precise numerical value resulting from failure to select the correct strategy to manage financial flows are taken into account (Rouyendegh, 2011). Because of the phase structure calculations based on the opinions of experts have used. As every year, a large share of the budget has been spent doing various projects and success in the implementation of projects have been working a significant impact on the country’s economy, the issue of supply chain research project is the centerpiece of the requirements. In recent years, much research has been done in this area. Kou et al. (2014) is a clustering algorithm to assess the financial risks the company offers special accident forms. The. First, according to previous research, review the company’s financial risks and measures to assess the financial risks of the company’s financial and limitation. The multi-criteria decision-making methods using the clustering companies with regard to financial risks and financial performance have been addressed. Swiderski et al. (2012) to evaluate the classification of financial companies using multi-stage regression and neural networks have been investigated. Kung et al. (2011) in their study to evaluate the financial performance of the companies using Fuzzy AHP Fuzzy focused Topsis. 5 companies choose them as their case study and then using Fuzzy AHP financial indicators to weighting and finally using Fuzzy Topsis the ranking and selection of companies based on their financial performance focused. Given the importance of oil and gas industry as well as the importance of cash flow management projects in the industry, in this study to provide cash flow management strategies in supply chain projects in oil projects in Hormozgan province are discussed. Therefore, the first step, identifying indicators and factors influencing financial flow management and to determine priorities and the effectiveness indices of Fuzzy DEMATEL been done. Then with the help of Fuzzy ANP method is to calculate the index weight.

## 2. PURPOSE AND METHODOLOGY

The main objective of this study is to provide financial flow management strategies in the supply chain of oil and gas projects in Hormozgan province is also secondary objectives of the study are as follows.

• Investigating the Indicators and Factors Affecting Financial Flow Management in the supply chain of oil and gas projects in Hormozgan province

• Evaluating and ranking effective indicators and appropriate management strategy of financial flows in supply chain management for oil and gas projects in Hormozgan province

• provide appropriate strategies for the management of financial flows in the supply chain of oil and gas projects in Hormozgan province

Research interest in oil and gas projects in Hormozgan province is done .Even be noted that this study can also be applied in all industries. This year is the time domain to the start of 2015 until 2016 ends. Employees and industry professionals are experts in the study.

In the present study to determine the validity of survey research professionals about the validity of the questionnaire was confirmed. Each of the indexes, content validity were examined and the resulting number was compared with the number in the LAWSHE Table, all cases 30 content validity index was necessary. By examining the reliability of the indicators showed that, the Cronbach’s alpha of 0.99 was calculated using SPSS. Since the minimum acceptable alpha should be 0.7, so reliability is confirmed studied (Saunders and Cornett, 2008; Yalcin et al., 2012).

## 3. RESULTS

### 3.1 Select the Factors and Criteria of the Current Strategy, Financial Flow Management

The process for the preparation of the initial list of factors to select financial stream management strategy by reading articles as well as consultation with respected professor in the relevant field guide as well as study books in the field of assessment strategies, a total of 19 were selected for the desired parameters in Table 1 below.

### 3.2 Descriptive Statistics

Table 2 shows the distribution of subjects according to varying studies and the results indicate that 56 percent of the participants were undergraduate graduate compared to the other sections are predominant in this study. The class of diploma and associate degree is 11 percent participated in this study.

Table 3 shows that 56 percent of the participants were undergraduate positions that were dominant among others. In addition, 18% of participants and 18% of management posts were headed.

Table 4 shows the results of descriptive statistics related to research indices. The above table indicates the average for all variables between 3 and 4 respectively. The average standard deviations of valid data center as well as gathering data is the average for each indicator considered in this study, respectively. Standard deviation, skewness, kurtosis, and deviation from them reflect the views of the participants is the dispersed or non-dispersed, each studied separately. Also according to the data in the table above conclusion is the normality of the data. In other words, the normal conditions for the confirmatory factor analysis is established.

### 3.3 Analysis and Evaluation of Causal Relations

#### 3.3.1 Matrix Severity of Overall Relations

After identifying performance, evaluation indices now turn to identifying causal relationships between the five main points seems. Hence, help in the form of a questionnaire survey of experts and saying, these relationships were identified: What is extremely direct effect on each other indices. Spectrum of responses using the proposed criteria has a major impact on the behalf of no effect. F symbol economic perspective, P symbol perspective of internal processes, PO symbol perspective of political and legal factors, L and R symbol of the challenge landscape and growth perspective is the risk. After identifying the experts to integrate the Comments heading. It is extracted through simple average of all respondents made comments. After gathering comments, Matrix intensity of direct relations to be normalized.

Having obtained the normal matrix, the matrix phase to obtain the overall strength of the relationship. The elements of this matrix represents the overall intensity of direct and indirect relations to each other is the elements. With the help of software MATLAB done. The next step of crystal phase matrix is overall relations. In this study, CFCS techniques used for this purpose. The effects of various factors according to experts knowledge is presented in Table 5

#### 3.3.2 Calculate ri + cj and ri-cj Weights

The ri + cj and ri-cj and weights in the Table 6 states:

#### 3.3.3 Draw a Diagram of a Causal link

The diagram shown in Figure 1 is a causal relationship between the criteria so that the horizontal axis represents the vertical axis represents ri+cj and is ri-cj. Measures that are above the horizon reflects the causes and measures that are indicated below the horizon is disabled. In this diagram, according to the obtained values in Table 6 ri-cj is positive if it means that i have a reason and negative means that it is operating with disabilities.

#### 3.3.4 Calculate the Value p Threshold and Plot CRM Diagram

Each element in the matrix relationship, which gives us the entire information agent, i to j factors affect how much. To determine the threshold value p for separation of small reasons, only factors that influence the relationship matrix the whole is greater than the threshold value (p) CRM is displayed in the graph. P value equal to the average of the correlation matrix elements are defined. The average value of the correlation matrix for the main criterion, 2.90 is obtained with respect to the threshold value of the correlation matrix becomes as Table 7. Due to the resulting matrix CRM diagram is shown in Figure 2.

### 3.4 The Application of Fuzzy ANP to Analyze the Weights Indices

After completing the previous steps of the method of analysis of causal relationships between landscape DEMATEL in order to evaluate and assess the lattice structure, now based on the previous step, create a standard questionnaire elderly ANP. In this study, the importance of asking questions to experts with an index other than the index with respect to the target, collect and pairwise comparison matrix formed with the help of EXCEL and MATLAB software extracted the relative weights of index performance evaluation. In order to calculate the amount of catch in each pairwise comparison matrices, vectors designing and calculating the relative weight of pairwise comparison matrices obtained from the previous step did. There are various algorithms for estimating the weight but the clock AHP method recommended weighting stems. Almost all calculations relating to the ANP, according to preliminary judge de-cides that occurs in the matrix of paired comparisons, done and any errors and inconsistency in comparing the importance of the options and indices end result of flawed calculations makes. The consistency ration (CP) that measures the consistency of judgments and shows the extent to which the priorities of comparisons can be trusted.

The final weights calculated from the super matrix so that the final weight of each indicator are shown in Table 8.

## 4. CONCLUSION

In summary, this study aims to help decision-making procedures by multiple criteria in the Fuzzy evaluation of effective strategies to manage financial flows were different from the methods listed earlier, such as statistical analysis, data envelopment analysis, ratios financial and others. In this study, not only of the Fuzzy ANP method to find, the relative weights of indi-cators were used to assess perspectives but the structure of the interaction between different perspectives as-sessment that has been raised is also discussed. Through the application of Fuzzy DEMATEL methods In order to analyze the financial and challenge relationships between functional indices, causal factors and causes of disabilities were identified. As well as to validity addi-tion to lavished indicators, both exploratory factor analysis and confirmatory financial and challenge fac-tor analysis were used. The reliability was assessed by Cronbach’s alpha.

In this study was evaluated in two separate phases to influence elections proper cash flow management strategies, were discussed. In the first phase, the main aspects and relations between them were evaluated. Thus, the method of DEMATEL three types of output was achieved. The main point was calculated weight. Pairwise was evaluated the causal relationships and causal being in the general case was determined. The results of analysis of causal relations offspring’s DE-MATEL approach phase, it was observed that the fi-nancial perspectives and feedback-risk relationship is. This means in addition to the other terms of these two perspectives can establish causal relationships, but can also be interrelated. The sub-index also have an impact on each other. In other words, the causal relations and communications sub-index of the financial perspective and the risk was higher than the standard. In paired comparisons questionnaire on network analysis, this point will be considered. The sub-index of these two perspectives with respect to each sub-index are associ-ated with these perspective pairwise comparisons. This means that in areas such as the financial and risk indi-cators of the influence and any change to the better financial, challenge, and financial factors affect the indicators mentioned above.

Also according to the results of internal process perspectives, political and legal and challenge factors and risks are known collectively as casual impressive sight, which means that the total amount of influence affected them more than they are other aspects of macroeconomic variables, learning and development disabilities are known as sight.

So view internal process perspectives, political and legal and challenge factors and designing risk is regular-ly monitored by the organization to improve the organi-zation due to incomplete movements. In addition, in all aspects, the most important of them is the perspective of macroeconomic variables. This shows that in reality, in terms of macroeconomic variables is of paramount importance in the selection of financial flow manage-ment strategies. Because this perspective According to the results and their effects compared to other perspec-tives is the highest position. So, if we can improve the landscape and are constantly maintained in a balanced condition can be hoped that these upgrades to enhance your organization's performance can be increased un-derlying profits for the organization.

Then the method DEMATEL, weight and cause-effect relationships, we examined five different perspec-tives, using Fuzzy ANP weight is associated with each sub-index also point are calculated.

A ranking of the 18 measures affecting confidence in effective strategies, respectively, among the 18 select-ed criteria, exchange rates and political stability of the experts are the most important indicators. Therefore, it seems essential to have the greatest weight on the im-portance of indicators that more studies were done. For example, it is necessary on the political situation and its impact on communication in the supply chain more accurate survey done and on what grounds is confirma-tion of the company and its relationship with political change what are the different types.

Most of these factors are listed in the literature to some experts suggested some of them also have been added to this version. Each of the previous research, some of them as the main factors affecting the Trust’s emphasis. Previous studies in management strategies, financial flows shows that key elements of a compre-hensive study that examined the impact strategy is not found. This study was developed in line with previous studies and identify major risk factors and provide a comprehensive model, which the public image of the factors provide communication, was conducted. The study also adopts a different approach and at the same time in line inspired this research. In summary, the main differences between this study and other studies in this field provide a comprehensive picture about the factors affecting the choice of strategy. The difference this study, using Fuzzy cognitive maps and weighting the relationship is causal. In fact here are not the only fac-tors have been identified, but their relationships are classified and weighted so that the reader will have a better view of various factors.

### 4.1 Research Limitations

Given that the study’s limitations, the present study is not exempt from this issue and the limitations and obstacles, which include the following.

• Limited resources:

Lack of resources some of the variables in the model that was interrupted study

• The inherent limitations of the questionnaire:

According to the survey measures perception of the reality, this perception may not be entirely consistent with reality.

• Limitations Researcher:

Limit the time and expense for researchers

• Limitations subjects:

Some respondents due to time constraints and busy too, etc., did not show much interest in answering the questionnaires provided. It also did not have a cor-rect understanding of management concepts

### 4.2 Suggestions for Further Research

According to the results and findings of the study and who were studied, the recommendations for future research and in connection with the proposed assess-ment institutions. Some of these suggestions are as fol-lows:

• Use the model to incorporate real-world con-straints that exist. So that the weight of each of the strategies to be targeted as a parameter func-tion and determine the allocation to each of the institutions. The proposed study will be moni-tored in the online environment.

• To consider the concept of sustainable supply chain management in evaluating the perfor-mance of units

• According to the results of the research in the discussion of financing strategies, in which cross-trade was selected as the best strategy, it is sug-gested that in the studied industry, to develop the trade of exporters (importers). it is proposed that, in the case of goods exported to another country (Investor), or the Investor's Institution for the provision of cash resources (capital for the pur-chase of equipment and production forces). And non-cash (equipment, technology, technical knowledge, etc.) required for the implementation of the project, related goods or Unrelated to the original item.

• Based on the results of the study and evaluation of financial planning strategies, it is suggested that, as debt management is selected as the best strategy, it is suggested that the relevant bond in-dustry be distributed and the results discussed.

• Regarding the results of the project, since in evaluating the priority of strategies, credit ex-changes are considered as the best priority, part-ners are asked in their respective companies to consider sales as a solution, and their results after a The financial period will be reviewed.

• It is suggested that, based on the results of the re-search in the discussion of financial control, which modern financial-accounting standards were considered as the best strategies, several new financial-accounting strategies would be used.

• The study, a key indicator of performance eval-uation in choosing the right cash flow manage-ment using multi-criteria decision-making meth-ods is introduced. Next preceding studies pre-sented in this study, the pattern can be imple-mented in various industries also developed a set of indices or combine with other analytical tools.

• According to the results, indicators of financial perspective has the greatest impact on weight and performance evaluation strategies are stud-ied. Hence, it is recommended in future research studies on factors affecting these indicators was done in the company.

## Figure

Diagram of causal criteria.

CRM Diagram

## Table

Selected final factors

Distribution of sample in terms of education

Distribution of samples by positions

Descriptive statistics of research variables

Comments merger experts in the field intensity of interaction five perspectives on each other

Calculate ri + ci and ri - ci

Matrix whole relationship with respect to the threshold value

The final weight of the Index using the super matrix

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