
Chapter 5
New product selection in fashion
retail supply chains
SUMMARY
In this chapter, we study the new product selection problem in two-echelon single
manufacturer single retailer fashion retail supply chains. We consider the situation
when the fashion retailer is planning to offer a new product from a set of available
product options. Since demand relates to the future market situation, we assume that
there exist two states of the world for each new product candidate: One denoting the
case when the market demand is expectedly high and one representing the case when
the market demand is expectedly low. The probabilities for the occurrence of high