Using an optimization model to support small sewing companies: a case study in a Brazilian textile cluster

Purpose Textile manufacturers worldwide are reformulating their networks, often outsourcing them to maintain a competitive advantage and increase market share. From this perspective, the purpose of this study is support the partnership selection process to develop a sustainable chain that effectively meets customer needs. Brazil has the largest textile and apparel chain in the West and is distinguished by its completeness, from fiber production, spinning, weaving, knitting, finishing and sewing to fashion shows. However, a firm’s relationship, especially in the production stage, is based on informal contracts, which result in a negative operational impact. Design/methodology/approach A methodological framework was developed based on a stable matching process to determine the optimal supplier network structure. This study presents a model application for the denim apparel chain in northeast Brazil. Findings In these environments, providing choices and recommending suppliers can be beneficial for effectively attending to demand requests, reducing production costs and improving quality through collaboration with sense relationships in a network. Thus, this study presents a better match from the negotiators’ perspective. Originality/value The findings of this research are of primary interest for guiding collaborative network composition in the textile and apparel chain. In particular, apparel domain companies can improve their effectiveness in decision-making by measuring the characteristics and potential of all companies involved in networks.