Quick response in fashion supply chains with dual information updating

Tsan Ming Choi

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

We study in this paper the Quick Response (QR) policy in a two-echelon single-manufacturer single-retailer supply chain with a fashion product and dual information updating. To be specific, under Quick Response, a fashion retailer can collect market information towards the sales of a pre-seasonal product whose demand is closely related to the demand of the seasonal product. This information is then used to update both the unknown mean and unknown variance for the seasonal product's demand by Bayesian approach. We consider the situation that there are ordering and production costs uncertainty and differences. After deriving the analytical model, we show the conditions under which QR is beneficial to the supply chain. Measures that can be taken to create Pareto improvement scenario in the supply chain and the individual echelons are discussed. Managerial insights are developed.
Original languageEnglish
Pages (from-to)255-268
Number of pages14
JournalJournal of Industrial and Management Optimization
Volume2
Issue number3
Publication statusPublished - 2006

Keywords

  • Quick response policy
  • Bayesian information updates
  • Supply chain management
  • Fashion business

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Applied Mathematics
  • Control and Optimization

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