Quick response in fashion supply chains with dual information updating. (English) Zbl 1127.90336

Summary: We study in this paper the quick response (QR) policy in a two- echelon single-manufacturer single-retailer supply chain with a fashion product and dual information updating. To be specific, under quick response, a fashion retailer can collect market information towards the sales of a pre-seasonal product whose demand is closely related to the demand of the seasonal product. This information is then used to update both the unknown mean and unknown variance for the seasonal product’s demand by Bayesian approach. We consider the situation that there are ordering and production costs uncertainty and differences. After deriving the analytical model, we show the conditions under which QR is beneficial to the supply chain. Measures that can be taken to create Pareto improvement scenario in the supply chain and the individual echelons are discussed. Managerial insights are developed.


90B30 Production models
90B50 Management decision making, including multiple objectives
90C90 Applications of mathematical programming
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