
Chapter 3
Inventory models and coordination
in fashion retail supply chains
SUMMARY
In this chapter, we investigate two fundamental inventory models in fashion retail
supply chains. To be specific, first we examine the EOQ model and its applications
in fashion retailing. Second, we examine the newsvendor problem and discuss how
it relates to fast fashion retailing. For both models, numerical illustrative examples
are included to better present the ideas. After discussing these two classical models,
we proceed to examine the coordination challenge in the fashion retail supply chain
systems. We prove that owing to double marginalization effect, the fashion ...