Linking tactical and operational decision-making to strengthen textile/apparel supply chains

Abstract

The globalisation of manufacturing activities in the industry has brought innumerable challenges to the textile/apparel supply chain activities, including forecasting and inventory management. The management of supply chains is surrounded by risks, opportunities, and threats that companies must sort out until their products reach their final customers. This study presents a way to minimise waste in the pipeline with the integration of a forecasting methodology and inventory management techniques. It addresses the influence of seasonal demands in the US market, which requires a constant adjustment in executing planning decisions. This research shows the implementation of seasonal forecasting techniques accompanied with inventory cost reduction as the key to reach efficiency and strengthen textile/apparel supply chains. This paper first reveals the importance of seasonal forecasting for decision-making activities at a tactical level in the industry. The outcomes of these forecasting activities set the parameters to develop and execute operational-level activities, the activities in inventory management. This research presents techniques to support the control of the product flows to reduce inventory that takes place in different geographic locations along the supply chain pipeline. At the end, this research links and integrates two levels of decision-making to create a smooth synchronisation of supply chain management activities and thus enhance the competitiveness of supply chain participants in this fiercely competitive industry.