Designing a clothing supply chain network considering pricing and demand sensitivity to discounts and advertisement

Abstract

These days, clothing companies are becoming more and more developed around the world. Due to the rapid development of these companies, designing an efficient clothing supply chain network can be highly beneficial, especially with the remarkable increase in demand and uncertainties in both supply and demand. In this study, a bi-objective stochastic mixed-integer linear programming model is proposed for designing the supply chain of the clothing industry. The first objective function maximizes total profit and the second one minimizes downside risk. In the presented network, the initial demand and price are uncertain and are incorporated into the model through a set of scenarios. To solve the bi-objective model, weighted normalized goal programming is applied. Besides, a real case study for the clothing industry in Iran is proposed to validate the presented model and developed method. The obtained results showed the validity and efficiency of the current study. Also, sensitivity analyses are conducted to evaluate the effect of several important parameters, such as discount and advertisement, on the supply chain . The results indicate that considering the optimal amount for discount parameter can conceivably enhance total profit by about 20% compared to the time without this discount scheme. When we take the optimized parameter into account for advertisement, 12% is obtained for the total profit. Based on our findings, the more the expected profit value, the higher the total amount of total profit and risk. The results of this research also provide some interesting managerial insights for managers.

The impact of COVID-19 on the supply chain disruption of Micro and small companies in the confection sector in Lima during 2020 and 2021

“…Likewise, with respect to sales, as mentioned by Mohammad et al (2021) demand and price are the two factors that directly affect the supply chain of the apparel industry, in the micro and small business sector a great impact was visualized in the correlation of dimension 1 as 79.33% of the respondents of the same category agreed with an inability to generate income, sell their main products and maintain high profit margins. (Table 5).…”