Skip to Main Content
Fashion Retail Supply Chain Management
book

Fashion Retail Supply Chain Management

by Tsan-Ming Choi
May 2014
Intermediate to advanced content levelIntermediate to advanced
122 pages
4h 18m
English
CRC Press
Content preview from Fashion Retail Supply Chain Management
12 Fashion Retail Supply Chain Management
Checking the second order derivative of π
SC
(s) with respect to s shows that it is a
strictly concave function:
dπ
SC
(s)
ds
=(r m)b ks,
d
2
π
SC
(s)
ds
2
=−k < 0.
As a result, the optimal service level for the fashion retail supply chain system, s
SC
, can
be found by solving the respective first order condition:
dπ
SC
(s)
ds
=0 s
SC
=
(r m)b
k
.
Since in most traditional wholesaling business, the wholesale price w is larger than the
product cost m, i.e. w > m, we have Proposition 2.1:
Proposition 2.1. Under the pure wholesale pricing scheme with w > m, the optimal
service level of the fashion retail supply chain system is ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

The Profitable Supply Chain: A Practitioner's Guide

The Profitable Supply Chain: A Practitioner's Guide

Ramnath Ganesan
Strategies for Success in Retail (Collection)

Strategies for Success in Retail (Collection)

Herb Sorensen, Z. John Zhang, Dick Blatt, Rick DeHerder, Jagmohan Raju

Publisher Resources

ISBN: 9781138000285