The production planning process for a network of firms in the textile-apparel industry

Abstract

The paper investigates how the decision variables of the production planning process for a network of firms in the textile-apparel industry, i.e. planning period length, material availability, the link between production orders and customer orders as regards colour mix, can affect the system's time performance, whose measurement has involved the creation of two new indicators. To adhere to reality, we studied and collected actual data from one of the most important Italian companies, the Benetton Group SpA and using these observations as a basis, a simulation model was built. Only the production planning period compression has been recognised as yielding a significant improvement in the external time performance. A relation between the external time performance and the internal time performance of the network is recognised. The cash flows associated with different lengths of the production planning period are analysed.