Abstract
Given the rapid diversification of products in the textile and apparel industry, manufacturers face significant new challenges in production. The life cycle of apparel products has contracted and is now, generally, a several-week season, during which time a majority of products are supposed to be sold. Products that do not sell well may be sold at a price lower than the fixed price, and products that do not sell at all within the sales period may eventually become forced disposal. This creates long-term management and environmental problems. In practice, shipping personnel determine when to ship products to stores after reviewing product sales information. However, they may not schedule or structure these shipments properly because they cannot effectively monitor sales for a large number of products. In this paper, shipment is considered to reduce the risk of product disposal on the premise of selling at a fixed price. Although shipment quantities are determined by various factors, we only consider the change in inventory at the logistics warehouse, since it is difficult to incorporate all factors into the analysis. From cluster analysis, it is found that shipping personnel should recognize a policy to sell products gradually over time. Furthermore, to reduce the risk of disposal, we forecast the inventory from conditional probability and are able to extract products out of a standard grouping using past data.
Highlights
Environmental problems such as global warming and water shortages along with the expansion of social disparities from globalization remain unsolved in the world, they continue to escalate
This system is known as Quick Response (QR), and it has demand-driven characteristics
In this study, based on the premise of selling at fixed price, we tested an approach for reducing waste from unsold products in the textile and apparel industry and, thereby, mitigating adverse effects on the environment
Summary
Environmental problems such as global warming and water shortages along with the expansion of social disparities from globalization remain unsolved in the world, they continue to escalate. Customer demand often deviates from what is anticipated in the production plan, and a surplus or shortage results This is because of the long lead times before a sales period [7] and because apparel products are seasonal, that is, usually only one season. If this cycle were to continue, profits would inevitably decline and sustaining the business over the long term would become more difficult To prevent problems such as this in the economic dimension, companies would need to increase or at least maintain the number of products sold at a fixed price. In consideration of the need to sell these products at a fixed price, personnel forecast the inventory ratio in the sales period and consider shipping timing in order to reduce the disposal risk
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