Coordinated planning models for supply chain management : case study of a Thai garment factory | |
| Author | Wipanan Iaprasert |
| Call Number | AIT DISS. no. ISE-03-02 |
| Subject(s) | Business logistics--Thailand Clothing trade--Thailand |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Engineering, School of Advanced Technologies |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. ISE-03-02 |
| Abstract | Fashion garment industry has complex supply chain issues due to short life cycle, seasonal demand behavior, a high variety of product styles, numerous local and global retailers. This research work aims to increase the effectiveness of a garment factory supply chain by analyzing the demand patterns and coordination between buyers and suppliers. One of the important inputs to any operations planning is demand forecasting. A Twostage Multiple Regression model is developed to forecast the demand for a product family. Comparisons show that this model performs better than time series models for the given situation. The demand of an individual end item is derived from the demand forecast of product family using subjective probabilities. A single lot production scenario is considered. The coordination is considered in terms of joint planning and information sharing of various parties. The models are taken up in the increasing order of collaboration. Appropriate mathematical models are developed for general applicability and after determining their suitability, they are applied for a specific garment factory. One such manufacturer-retailer coordination is returns policy. Here retailers can return all the unsold items at a full or fraction of wholesale price. With this type of incentives, retailers are willing to stock more items, increasing the level of availability to customers. Another type of coordination is joint planning. Both manufacturer and retailer would plan jointly ordering and pricing to maximize total system profits. Furthermore, a proper profit sharing scheme is suggested for splitting the additional profits. Mathematical proofs that the coordination gives a win-win situation are presented. An important factor which influences demand is the selling price. Two types of relationships are considered: linear and assumed non-linear demand functions. Selling price is taken as another decision variable of the coordinated planning model. A model is developed to maximize total profits. The study is then extended to situations where both wholesale and repurchase prices are decision variables. Wholesale and repurchase prices are assumed to be fixed based on amounts or fractions of totals of retailer order and return quantities, respectively. This dynamic wholesale and repurchase prices policy improves fu1iher retailer and total profits and shows the benefit on information sharing among manufacturer and retailers. Finally, the above developed general models are applied to a Thai garment factory. The Two-stage Multiple Regression model developed previously is used as a linear pricedependent demand function. This coordinated planning model can also be used to decide to maintain or cancel a product for a retailer. This work shows that information sharing and joint planning create a win-win situation. In these days of tough global competition such a cooperation is necessary for sustainable business. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. ISE-03-02 |
| Type | Dissertation |
| School | School of Advanced Technologies (SAT) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Nagarur, Nagendra N.;Anulark Techanitisawad; |
| Examination Committee(s) | Paul, Himangshu; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2003 |