Modeling fashion retail supply chain through mixed integer linear programming: A case of pull & bear Vietnam

Abstract

The increasing request for speed and efficiency in today’s Fashion Retail Supply Chain, is adding more and more complexity to the system which asks for high product availability and quick response to always changing market demand. In this context, using System Thinking method, this paper aims at developing a Causal Loop Diagram for the definition of the cause and effect relationships between the several variables which define the system under exam. Being time an essential variable in this field, in fact, dynamic complexity arises due to interaction of agents over time and evolving situations. In this context, our work emphasizes and analyses all the conflicting requirements that must be accurately evaluated and balanced in order to effectively manage the complex network of retailers and to help the decision making process behind the purchasing, delivery and replenishment steps. Keywords: System Thinking, System Dynamics, Causal Loop Diagram, Fashion Industry, Retail, Supply Chain