Research On Fashion Supply Chain Coordination Strategy Based On Two-ordering Opportunities

With the response to market information being more and more agile,the product life cycle becomes shorter and shorter and the ordering strategy between supplier and retailer gradually turns to small quantities with multi-frequency from a large number with less frequency.Fashion apparel,as a representative of short-life-cycle products has notable features of short life cycle,time-sensitive,demand fluctuation,low residual value after sales periods.Fast fashion brings to huge waste of resources and high outdated rate while it's easier for customer to get the fashion cloth in shorter time and lower price.So research on ordering strategy and supply chain contracts play important roles in short life cycle supply chain management and operation.This dissertation considering market demand update and taking single life cycle fashion apparel supply chain as the research object,analyzes the characteristics of fashion supply chain and makes research on related fashion apparel supply chain coordination theory.Based on the fashion apparel products with one-supplier and one-retailer in single sales period,the paper makes research on fashion apparel ordering strategy and the supply chain contract.Under the premise of that replenishment is allowed during the sales period,mathematical models on profit function for manufacturer,retailer,and the supply chain of one-ordering and multi-ordering opportunities(two-ordering opportunity is included in multi-ordering opportunity)are established.Qualitative analysis is made on the expected profits model of the manufacture,retailer,and the supply chain under non-contract,buyback contract,revenue sharing contract,and combined contract of buyback and revenue sharing contract.Then strategy of two-ordering opportunity with combined contract of buyback and revenue sharing contract is introduced and analyzed based on a case.According to iterative optimization of simulated annealing algorithm with Matlab,the influence of parameters(cycle service level,buyback price,and revenue sharing factor)under supply chain contract on the coordination of fashion supply chain was quantitatively analyzed.It is demonstrated that combined contract with two-ordering opportunities has a positive effect on fashion apparel supply chain expected profit.The result shows that two-ordering opportunities and buyback contract will lead to supply chain imbalance while it increases the supply chain expected revenue.The combination of revenue sharing contract and buyback contract can realize the reallocation of the whole supply chain profit.The combined contract can solve the double marginalization effect problem and achieve a win-win situation among supply chain actors for supply chain coordination of fashion apparel field.