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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
56 Fashion Retail Supply Chain Management
Define:
s =
r + τ c
r v
.
We consider only the case when τ<c v (or else consumer welfare is so significant
that the fashion retailer will have to order an infinite amount of the product). We can
simplify U
R,0
in the following:
U
R,0
= (r v)µ
0
(c v τ)(µ
0
+
d
0
+ δ
1
(s)) (r v)
d
0
+ δ
1
(
s
)
= (r c)µ
0
(r v)
d
0
+ δφ(
1
(s)).
Similarly, at Time 1, we define U
R,1
(q|µ
1
) =EP
R,1
(q|µ
1
) +CW
1
(q), and derive the
optimal ordering quantity as follows:
q
R,1
(µ
1
) = arg{max
q
U
R,1
(q|µ
1
)}
= arg
max
q
(r v)µ
1
(c v)q (r v)
d
1
+ δ
q µ
1
d
1
+ δ
+ τq
.
It is straightforward to find that
d
2
U
R,1
(q|µ
1
)
dq
2
< 0 and hence
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Publisher Resources

ISBN: 9781138000285