A replenishment strategy to support quick response on apparel supply chain

This paper presents a quick replenishment policy that supports supply chain system coordination by considering the price of both reorders and replenishment wholesalers.Firstly,models of expected profits of the manufacturer and retailer are built.Based on the models,an optimal controlling model for effective replenishment is discussed.Secondly,optimal wholesale price and ordered quantity for the retailer are also discussed.Finally,the paper elucidates it with computation and analysis.If the replenishment ratio is fixed and the wholesale price for the replenishment is changed,the manufacturer′s profit will increase while the retailer′s profit will decrease,and the supply chain system′s profit will also decrease.In this case,the supply chain doesn′t coordinate well.In contrast,if the manufacturer carries out flexible replenishment ratio according to the customer′s demand,even though the reordered wholesale price is fixed,the profits of both the manufacturer and retailer will be maximized,and the supply chain accomplishes good coordination.