Analysis for inventory management of a fast fashion company

• Main Author: Huang, Mufeng
• Other Authors: Moon Seung Ki
• Format: Theses and Dissertations
• Language: English
• Published: 2019
• Subjects: DRNTU::Engineering::Manufacturing::Inventory control
• Online Access: http://hdl.handle.net/10356/77295
• Institution: Nanyang Technological University

With the continuous development of global integration, a large number of famous apparel companies enter the Chinese market, and the competition in the apparel industry is extremely fierce. In recent years, China's garment industry has been overstocked, operating efficiency has declined, and inventory management problems have affected many business operators. With the characteristics of the apparel products with uncertain demand and large fluctuations, apparel enterprises are faced with the problem of inventory backlog. In this environment, improving the demand forecast level of products, optimizing inventory management, and reducing inventory costs have become effective means for enterprises to enhance market competitiveness. The objective of this research is to investigate the demand forecasting and inventory control method of MT that is an apparel company in China. We review the literature related to demand forecasting and the inventory management and the inventory status of the apparel industry. According to the actual situation of the MT, there are some problems of demand forecasting and the inventory control: e.g. inaccurate products forecasts, difficulty of measuring demand, low levels of inventory management and ignorance of inventory replenishment. To resolve the problems of the MT, we apply demand forecasting methods and a control theory to develop strategies for the demand forecasting and inventory control levels of the MT. According to the products demand characteristics of the MT and the classified the products of the MT, we use exponential smoothing approach to predict market demand and an EOQ model to control inventor. The research also applies a grey prediction model to predict the uncertain demand of fashion products. After the product entering the market, a dynamic planning model is applied, and a heuristic algorithm is used to minimize the supply-demand cost. And then, a reasonable initial order quantity and optimal replenishment quantity are determined. Based on relevant apparel demand's forecasting and theory of inventory management, this research utilizes the actual circumstance of the MT, discusses and analyzes MT's existing inventory problems with its management issues.