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Responsive supply in fashion mass customisation systems with consumer returns

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  • Tsan-Ming Choi
  • Shu Guo

Abstract

Mass customisation systems have been well-established in the fashion industry. Some fashion brands offer the mass customisation system for their selected seasonal products, and allow unconditional returns and full refund for any unsatisfied customers. Motivated by the above mentioned observed industrial practice and based on the growing importance of responsive supply, we explore in this paper the value of quick response supply in fashion mass customisation systems with consumer returns. We focus on investigating how the consumer returns rate affects (i) the optimal inventory decision of the fashion brand, (ii) the achievability of Pareto improvement in implementing quick response supply, (iii) the respective values of quick response for the fashion brand, the fashion supplier and also the fashion supply chain, and (iv) the impact of quick response supply on the environment. We interestingly find that consumer returns enhance the value of quick response supply to the fashion supplier. Quick response supply is also found to be helpful in reducing the environmental cost under the fashion mass customisation system with consumer returns.

Suggested Citation

  • Tsan-Ming Choi & Shu Guo, 2018. "Responsive supply in fashion mass customisation systems with consumer returns," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3409-3422, May.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:10:p:3409-3422
    DOI: 10.1080/00207543.2017.1292065
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    Citations

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    Cited by:

    1. Choi, Tsan-Ming & Luo, Suyuan, 2019. "Data quality challenges for sustainable fashion supply chain operations in emerging markets: Roles of blockchain, government sponsors and environment taxes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 139-152.
    2. Guo, Shu & Choi, Tsan-Ming & Chung, Sai-Ho, 2022. "Self-design fun: Should 3D printing be employed in mass customization operations?," European Journal of Operational Research, Elsevier, vol. 299(3), pages 883-897.
    3. Zhao, Lianxia & Guo, Wen & Fang, Shu-Cherng & An, Qi, 2024. "Enhancing supply chain coordination through transparency initiatives to mitigate product returns," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    4. Choi, Tsan-Ming & Liu, Na, 2019. "Optimal advertisement budget allocation and coordination in luxury fashion supply chains with multiple brand-tier products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 95-107.
    5. Doyeon Kong & Yoo-Kyoung Seock & Steve Marschner & Heeju Terry Park, 2023. "Leveraging 4D Golf Apparel Wear Simulation in Online Shopping: A Promising Approach to Minimizing the Carbon Footprint," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    6. Na Liu & Pui-Sze Chow & Hongshan Zhao, 2020. "Challenges and critical successful factors for apparel mass customization operations: recent development and case study," Annals of Operations Research, Springer, vol. 291(1), pages 531-563, August.
    7. Shao, Xiao-Feng, 2020. "What is the right production strategy for horizontally differentiated product: Standardization or mass customization?," International Journal of Production Economics, Elsevier, vol. 223(C).

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