Research On Ordering Optimization Of Apparel Supply Chain Based On Buyback Contact

As an industry implementing life bit by bit,clothing is a vital part of human life.With the increasingly fierce industry rivalry and the continuous updating of management concept,the traditional clothing enterprises relying on their own independent development model is gone forever;nowadays,enterprises who want to have a long-term development must cooperate extensively with supply chain members.The coordinated development of the supply chain is a benign and long-term cooperation and development established on the basis of mutual benefit and mutual trust among the supply chain members.In order to gain more market share and seize sales opportunities,retailers need to arrange orders beforehand to launch products up to the last moment before selling season.It's difficult for retailers to predict retail sales accurately due to the instability of market demand,likely to cause unreasonable product orders.To prevent shortages and win more market share,many businesses tend to order more products than expected,the result of which is likely to cause product backlog,increasing retailer's inventory pressure.To solve the problem of reducing retailers' inventory pressure to stimulate the retailer orders,suppliers implement the buyback contract mechanism to coordinate the distribution of profits in the supply chain,i.e.,suppliers offer certain buyback price for unsold products during the end-of-season sale to incentive retailers to order.As clothing products will be sold at original price and then the sales price during the selling process,this paper studies the apparel supply chain ordering model with unsold products in the final stage of two period sales being repurchased.This paper analyzes the ordering problem of two-stage sales combined with buyback contracts for clothing products,classifying the distribution ratio of the consumer number in the first and second stage according to the proportion of consumers abandoning the purchase;for products set with different prices in the first and second selling stage,strategic consumers choose the corresponding stage to buy according to the size of the product residual utility which is calculated based on the psychological price and the current selling price.For the first phase of the sales proceeded with original price and the second with promotion price due to the existence of strategic consumers,establish decentralized decision-making model and centralized decision-making model of apparel supply chain ordering problem linked to strategic consumers based on the different proportion of consumers purchasing in the two different stages,analyzing the influence of two stage sales and different buyback prices on the order quantity.Discover the relationship between the change of order quantity and its corresponding profits from the perspective of retailers,suppliers and supply chain through numerical example,supposing that the optimal order quantity increases firstly and then decreases during the process,and the profits decreases gradually meanwhile along with the increasing proportion of abandoned purchase;whereas the profits of suppliers decreases and the retailers' increases with the improvement of the buyback price leading the optimal order quantity to decrease.Clothing product ordering process involves lead time,and the shorter the lead time,the higher the retailer's accuracy for the market forecast.As suppliers shorten the lead time will generate additional crashing costs,the paper considers the supply chain ordering model composed of fabric suppliers,apparel suppliers and retailers as well as customers from the perspective of three-tier apparel supply chain.The retailer issues the product order according to the customer demand,and the supplier produces the product within a specified time via crashing.The buyback contract is introduced on the premise of the traditional order model after planning the cost factors of fabric suppliers,apparel suppliers and retailers by analyzing the cost factors in the process of production and sales within the supply chain.It is proved that the buyback contract can effectively control the supplier's production and coordinate the profit allocation between the supplier and retailer.Considering the clothing production process with crashing scenario and different rush steps having different impact on the order quantity,the more rush steps,the shorter the lead time,and the stronger the ability to grasp the market.Taken into account the effect of stocking rate under different circumstances on the optimal order quantity and cost,it has been proved that the higher the stocking rate,the larger the cost;the greater the using batches that fabric supplier's cycle production provided for apparel suppliers,the smaller the optimal order quantity and the cost of a single order,but the total cycle cost has increased.Enterprises in the production should choose whether to proceed rush production or not accordingto the different situation as well as rush production components,making the greatest efforts to reduce production costs to increase corporate profits.To further verify the accuracy of the model,the actual sales data and the data obtained from the model are analyzed and tested,the facts of which shows that model is in conformity with expectations.The research indicates that the buyback contract can effectively coordinate the profit relationship among supply chain members,providing theoretical support and practical guidance for enterprise ordering.