PLANNING OF RESPONSIVENESS SUPPLY CHAIN AT EDWARD FORRER BANDUNG
retail company of fashion products is a highly uncertain demand and short product lifecycle. The fast changes of trend and the threat of new competitors force the company to adopt a quick response toward market demand and at the same time to maintain efficiency in total cost. Therefore, the compa...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/78518 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | retail company of fashion products is a highly uncertain demand and short product lifecycle.
The fast changes of trend and the threat of new competitors force the company to adopt
a quick response toward market demand and at the same time to maintain efficiency in total
cost. Therefore, the company needs a well organized supply chain management to maintain
the operation both factory and outlet to perform the balance between efficiency and
responsiveness.
EDWARD FORRER problematic symptoms nowadays was a decreasing profit
because of a decreasing number in product selling and a high holding cost in their outlet.
Through collecting some relevant data and conduct analyze, it can be concluded that the root
cause begin from both factory and outlet working system. At factory, the problem appears
from design division about decision to use economic raw material. Then at the outlet, the
problem was come from the proactive inventory system with minimum supporting data. Both
of the root causes was interdependent and influence the supply chain.
Proposed improvement solution for supply chain was by managing design and outlet
inventory. One of the possible plans in design management is to eliminate the discrepancy
between the product design and available raw materials that mentioned before. The product
can be designed by using Kano model that represented the customer need. For a long-term
planning, the company should try to import more attractive raw materials which have a better
quality. At the outlet, an accurate response can be applied. This accurate response is a system
that can overcome the uncertain demand in order to minimize unnecessary inventory.
Newsvendor model was applied to achieve the system. Newsvendor model can be used to
determine the mismatch cost that were resulted from lost sales and leftover inventory cost. |
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