Impact Of Product Proliferation On Fashion Reverse Supple Chain

In order to meet the diverse needs of consumers and stand out from the highly competitive fashion market,fashion companies often implement product diversification strategy.Although increasing the number of product types can better satisfy diverse customer needs,complexity in the product recycling,remanufacturing,and resale processes may erode a firm's overall profits.Strategic decision-makers in fashion companies often determine the types of products and the need for third-party logistics involved in by subjective judgment with lack of scientific approach to strategic choice,and thus establishing a mathematical model to enable enterprises to maximize profits has become a priority.In a closed-loop supply chain,product proliferation affects the reverse supply chain as well as the forward supply chain.For fashion companies,sales returns are very normal in this buyer-driven market.Fashion marketing companies return garment of quality defects to garment manufacturers.After the reprocessing by the manufacturers,they are sold with a certain discount in the market.In this paper,the re-manufacturer and manufacturer are assumed to be the same subject,which means that the manufacturer takes responsibility for product recovery.The increase of product ranges can better meet the needs of different consumers,but due to the complexity of the whole process,such as product recovery,remanufacturing and re-sale,product diversification strategy may reduce the overall profits of fashion manufacturers.This paper,starting from the theoretical basis and the literature review,describes three relevant theories,product diversification theory,reverse logistics theory and queuing theory respectively,reviews literatures about the supply chain,production and inventory,production lot size and lead time and understands domestic and foreign research trends.And then,the paper provides an overview of the supply chain of fashion companies,mainly introducing the impact of the product diversification on reverse supply chain.Because clothes are perishable products,the speed of decrease in value is very fast after a certain time,so with longer time of remanufacturing,the price is lower in the secondary market.Therefore,through models of queuing theory,this paper divides reproduction time into the time waiting for the formation of batches,the time waiting for reprocessing and the time of re-processing,and then builds a reverse supply chain model of product recovery consisting of a single manufacturer and several retailers.The decision variable is batch size,and this paper attempts to investigate the manufacturer's maximum profit.Thereafter,Z Company is taken as an example,the actual data are substituted into the formula,and sensitivity analysis is conducted to explore factors that influence the batch size and optimal profits.Finally,on the basis of this model,this paper analyzes the decision problems of fashion remanufacturing enterprises choosing third-party logistics.This paper only focuses on the research of issues about optimal profits of reverse supply chain in fashion re-manufacturers,without considering the impact of the positive supply chain.The maximum profit of reverse supply chain does not refer to the maximization of overall profits.Therefore,the conclusion that the more products returned enables the re-manufacturers to gain more profit can not be gained.Future researches can focus on the optimal profit of overall supply chain with taking positive logistics costs and the profit model into account.