Abstract

Stochastic computer‐simulation models have been constructed of the clothing supply chain and applied to retail inventory control. This quantifies the performance of quick response procedures for seasonal merchandise, thus creating an analytical tool. They are designed to investigate the effects of improved retailing and supply procedures on financial and other performance measures using two supply strategies: fixed quantity re‐ordering and fixed interval re‐ordering. These offer a wide range of options in experimentation. They permit an evaluation of both purchasing systems in relation to different quantities and lead‐time scenarios. Experimental work with both models has shown that if the replenishment time exceeds two weeks, the potential for lost sales greatly increases. This provides a benchmark figure for assessing the responsiveness of clothing industry supply chains.

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