Optimizing production allocation with simulation in the fashion industry: A multi-company case study

Abstract

Production Planning and Control (PP&C) has been deeply analyzed in the literature, both in general terms and focusing on specific industries, such as the fashion one. The paper aims to add a contribution in this field presenting an optimization model for the Fashion Supply Chain (FSC), developed considering an interdependent environment composed by a group of focal companies that work with both exclusive and not-exclusive suppliers. The proposed framework will combine simulation and optimization models based on parameters, decision variables, constraints and Objective Functions (OFs) collected through a literature review. The framework has been developed in a parametrical way, in order to fit the peculiarities of the different actors operating along the FSC. The empirical implementation of the framework has been conducted using data coming from fashion companies belonged to the same network, considering rush orders as stochastics events for the scenario analysis and Key Performance Indicators (KPIs) assessment.