A Supply Chain Network Design Of Fashion Retail Distribution: A Case Of Dottie Co., LTD

Abstract

Supply chain networks help create an effective context for supply chain management. Within this network exist suppliers, factories, product distribution centers and customers. For the supply chain in fashion retail, which plays an important role in bringing value to consumers, optimizing costs and increasingly demanding efficiency and speed, and complexity of the network requires high product availability, and quick response to ever-changing market needs. Therefore, organizations need to have a holistic view of the entire network. In this paper, the supply chain network optimization model is presented. The proposed model is used for strategic decisions such as determining the number of facilities and selecting the best supplier-retailer combination for the retail supply chain network, thereby minimizing the total supply chain network costs. The mathematical model of the optimization problem with different constraints and parameters recorded from the case company is solved by the Mixed-integer linear Programming (MILP) method and the mathematical programming problem solving software (CPLEX) then compares the results.