Abstract

The implementation of closed loop supply chain system is becoming essential for fashion leather products industry to ensure an economically sustainable business model and eco-friendly industrial practice as demanded by the environmental regulations, consumer awareness and the prevailing social consciousness. In this context, this research work addresses a closed loop supply chain network problem of fashion leather goods industry, with an objective of minimizing the total cost of the entire supply chain and also reducing the total waste from the end of life product returns. The research work commenced with a literature review on the reverse and closed loop supply chain network design problems of fashion and leather goods industry dealt in the past. Then, the identified CLSCND problem is solved using a mathematical model based on Mixed Integer Non-Linear Programme (MINLP) and then a suitable Hybrid Genetic Algorithm (HGA) developed for the CLSCND is implemented for obtaining optimum solution. Both the MINLP model and HGA are customized as per the CLSCND problem chosen and implemented for the industrial case of an Indian Fashion Leather Goods Industry. Finally, the solutions obtained for MINLP model in LINGO 15 and for HGA in VB.NET platform are compared and presented. The optimum solution obtained from the suitable HGA is illustrated as an optimum shipment pattern for the closed loop supply chain network design problem of the fashion leather goods industry case.

Highlights

  • The Indian leather goods, luxury and fashion accessories industries are exhibiting growth and encouraging global presence in recent times

  • The CLSC network design model considered in this research work is an integrated forward and reverse supply chain networks which consists of leather goods brand manufacturers, leather goods brand dealers, leather goods brand retailers and first customers in the forward distribution channel

  • The mathematical model based on Mixed Integer Non-Linear Programme (MINLP) was implemented to get an optimum solution in a reasonable time period using the commercially available optimization software LINGO 15

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Summary

Introduction

The Indian leather goods, luxury and fashion accessories industries are exhibiting growth and encouraging global presence in recent times. Several new ranges were launched in all brands and price points, in both leather and non-leather products categories with a special thrust on business collections, semi-formal products, and fashionable travel and luggage goods This increasing demand and variety seeking consumers approach lead to the supply of fashion products with short product life cycles and rapid product returns. This research paper deals with an industrial case study and implements the model, and suitable HGA for solving the CLSC network design problem in a real life situation in the fashion leather goods industry, which manufactures and supplies travel bags, luggage goods and leather hand bags to the domestic consumers and located at Mumbai, in the state of Maharashtra, in India. The paper ends with the concluding remarks with the summary of findings

Supply Chain Network Design Problems in Fashion Leather Goods Industry
Literature Review
Research Gaps
Statement of the Research Problem and Research Objectives
Statement of the Research Problem
Statement of the Research Objectives
Adaptation of Research Methods
Description of the CLSC Network Design Model
Findings
Conclusion

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