NDLI: A simulation study of a two-echelon apparel supply chain with forecasting error

Content Provider	IEEE Xplore Digital Library
Author	Dong Aihua Yu Liangxing Liu Tangyou Miao Qingying
Copyright Year	2010
Description	Author affiliation: Continuing Educ. Sch., Shanghai Jiaotong Univ., Shanghai, China (Miao Qingying) \|\| Coll. of Inf. Sci. & Technol., Donghua Univ., Shanghai, China (Dong Aihua; Yu Liangxing; Liu Tangyou)
Abstract	Accurate Response (AR) strategy was implemented in a one-echelon apparel supply chain including manufacturer and retailers in Obermeyer's case. Both the overproduction and underproduction of the manufacturer are cut down to a lower level than before. This paper proposes to extend their supply chain into two-echelon that considering the customer's demands. A simulation model written in Matlab 7.0 is developed to investigate how the forecasting error between the retailers' predictions and the customers' actual demands impacts the AR strategy. Two major stages are included in the simulation procedure. Stage 1 studies the performance of AR strategy using the developed simulation model. Stage 2 investigates how the forecasting error between the retailers' estimations and the customers' actual demands influences the performance of AR strategy. 8 levels of forecasting error are input into the simulation model to calculate the overestimation and underestimation of the retailers, the overproduction and underproduction of the manufacturer. For each level of error, ten experiments are conducted based on different error distributions stochastically generated. The result of the simulation shows that with forecasting error of retailers, the mean overproduction and underproduction of manufacturer increases significantly. This result shows the limitation of the AR strategy in apparel supply chain. It also indicates the importance of information sharing and in-season replenishments to the performance of the apparel supply chain.
Starting Page	1
Ending Page	6
File Size	198927
Page Count	6
File Format	PDF
ISBN	9789623676960
e-ISBN	9789623676960
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2010-10-06
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	Hong Kong Polytechnic Uni
Subject Keyword	Apparel Supply chain management Forecasting error Supply chains Estimation Color Predictive models Simulation model Mathematical model Forecasting
Content Type	Text
Resource Type	Article

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