A fast fashion safety-first inventory model
Journal
Textile Research Journal
Journal Volume
81
Journal Issue
8
Pages
819-826
Date Issued
2011
Author(s)
Abstract
In the industry of textiles and clothing, fast fashion is a trend. More and more fashion retailers are following the steps of the renowned brands, such as H&M and Zara, in having more frequent changes of styles every season and keeping a low inventory level. In this paper, we analytically explore this phenomenon in a supply chain with the safety-first objective. According to the Bienaym??chebysheff inequality theory, it is known that maximizing the safety-first objective is equivalent to minimizing the chance of making a profit lower than a target profit threshold. Accordingly, and with reference to the fast fashion system, we mathematically derived the optimal retailer? inventory policy. We found that the optimal policy was consistent with that which was applied in the case of fast fashion. Data sets from a fast fashion retailer were collected for further analysis. Extensive sensitivity analysis was conducted and the implications are discussed. ? 2010, SAGE Publications. All rights reserved.
Subjects
Bienaym??chebysheff inequality; Economics systems in textiles and clothing; fast fashion inventory system; optimization; safety-first objective
SDGs
Other Subjects
Garment industry; Inventory control; Optimization; Profitability; Sales; Supply chains; Textile industry; Textiles; Inventory levels; Inventory modeling; Inventory policies; Inventory systems; Optimal policies; Safety firsts; Sensitivity analysis
Type
journal article