Abstract
Purpose – The redesign of a product supply chain, in terms of production, cost and delivery capabilities can be effectively accomplished by mapping, analyzing and simulating the changes in the supply chain prior to implementation. The case being discussed pertains to the apparel industry in the USA. The beginning of 2005 marked the end of a 30‐year old quota on the apparel market in the USA. This has led many western apparel manufacturers to outsource their production to low‐labor cost countries. This in‐turn has led to increased customer lead‐times. This paper aims to discuss how the implementation of proper IT systems and supply chain measures can reduce lead‐times and also reduce total cost.Design/methodology/approach – An integrated approach is utilized to model the impact of apparel outsourcing added to a US apparel producer supply chain by studying the process map, data analysis, and simulation of the supply chain using Visio, Excel and @Risk simulation software. Using Monte Carlo simulation, the hy...
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