Three-level inventory deployment for a luxury watch company facing various perturbations

Abstract

A well-known Swiss watch brand, active in the top-end luxury market, is facing a complex inventory deployment problem where watches of different models (more than 100 different models) must be dispatched first to wholesalers to finally reach the shops where consumers come in. Along the way, different perturbations are expected at three levels (production plan, demand, and dispatching), and accurate reactions must be taken to fit to these uncertainties. Solution methods are proposed to solve realistic instances. Results show the relevance of the methods and the robustness of the solutions.

Tabu search for a parallel-machine scheduling problem with periodic maintenance, job rejection and weighted sum of completion times

“…Therefore, from this calibration of ( f 2 , u j , b j , h j ), we can deduce the following hierarchy of KPIs: (1) minimize the rejection costs; (2) minimize the bad scheduling of high-priority jobs; (3) minimize the inventory penalties. This hierarchy is in line with the industrial KPIs of various companies (Thevenin et al 2015(Thevenin et al , 2016Respen et al 2017;Thevenin and Zufferey 2019). Note, however, that our models and methods proposed below are general: they do not depend on the calibration of ( f 2 , u j , b j , h j ).…”

“… 2015 , 2016 ; Respen et al. 2017 ; Thevenin and Zufferey 2019 ). Note, however, that our models and methods proposed below are general: they do not depend on the calibration of .…”

Luxury supply chain management: a framework proposal based on a systematic literature review

“…For aspirational and absolute luxury supply chains, the control of point of sales involves increasing costs. One of the most usual costs in luxury supply chain management is the inventory cost (Brun et al, 2008(Brun et al, , 2017cCaniato et al, 2009;Sapra et al, 2010;Castelli and Sianesi, 2015;D'Avolio et al, 2015;Lucci et al, 2016;Respen et al, 2017;Agrawal et al, 2020). In a luxury market, which is characterised by high demand volatility and a large variety of products, luxury brands regularly deal with obsolescence risks, even in make to order environments (Brun et al, 2008;Sapra et al, 2010;Caniato et al, 2011;D'Avolio et al, 2015;Braglia et al, 2020).…”

Lexicographic optimization‐based clustering search metaheuristic for the multiobjective flexible job shop scheduling problem

“…It means that no lower level objective can be improved at the cost of deteriorating a higher level objective . The main advantage of lexicographic optimization is that it has much more chance to be applied in practice (e.g., job scheduling—Solnon et al., 2008; Respen et al., 2016; Thevenin et al., 2017, 2018; inventory management—Pasandideh et al., 2014; Respen et al., 2017). Indeed, from a managerial perspective, the a priori agreement of the priorities among objectives, which characterizes lexicographic optimization, is likely to be an easier task than an a posteriori selection of a nondominated solution in a multiobjective context where all the objectives have the same importance.…”