Motivated by the popularity of Value-at-Risk (VaR) objective in finance, this chapter reviews and studies its application in fashion retail operations management. First, a formal optimization model is reviewed in which the fashion retailer aims at optimizing a VaR objective with both pricing and inventory decisions. Second, the detailed solution schemes are explored. Third, numerical examples are included to illustrate applications of the proposed models. Fourth, the performance of pure buyback contract and pure wholesale pricing contract in enhancing supply chain efficiency is examined. Insights are generated and future research directions are outlined.
|Title of host publication||Fashion supply chain management : industry and business analysis|
|Publisher||Business Science Reference/IGI Global|
|Number of pages||10|
|ISBN (Print)||9781609607562, 9781609607586|
|Publication status||Published - 2012|