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Mathematical Problems in Engineering
Volume 2015, Article ID 670831, 15 pages
http://dx.doi.org/10.1155/2015/670831
Research Article

Analysis of Product Complexity considering Disruption Cost in Fast Fashion Supply Chain

Department of Industrial and Management Engineering, Hanyang University, Gyeonggi-do, Ansan 426-791, Republic of Korea

Received 28 May 2014; Revised 3 July 2014; Accepted 4 July 2014

Academic Editor: Tsan-Ming Choi

Copyright © 2015 Shaheen Sardar and Young Hae Lee. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Outsourcing in the textile industry has been playing an important role in the global economy for six decades. Recently, reshoring is an emerging trend due to various complexities involved in supply chain management. As compared with basic textile and apparel products, fast fashion products are complex in their own way. A single assortment contains several new styles, colors, and sizes with unpredictable demand and urgent deadlines. Numerous assortments run simultaneously in the supply chain. For each assortment, the garment manufacturer has to source various types of fabrics and materials from different suppliers and then manufacture the garments to ship within the deadlines. This complexity contributes to supply chain disruption. This paper develops a model to estimate supply chain disruption cost as a function of fast fashion product complexity in the global outsourcing environment. Estimation of disruption cost will help us to increase visibility and eliminate the bottlenecks in supply chain. Model conclusions are used to develop a method to manage the level of product complexity from the global supply chain perspective. Several strategies are proposed to manage the impact of product complexity on supply chain design.