Internet based elastic logistics platforms for fashion quick response systems in the digital era

Abstract Quick response (QR) systems, which aim to respond promptly to market changes by postponing inventory decisions with a reduced lead time, are critical to support fast fashion operations. Under QR systems, in the digital data analytics era, the fashion brand can acquire market information using digital technologies to improve demand forecasting. This enhances the respective ordering and transportation mode selection decisions. It is known that to implement QR systems requires the availability of the right logistics option (e.g., transportation mode) and the needed logistics capacity in the future. An Internet based elastic logistics platform (ELP) hence emerges to help. In this paper, in the main model, we analytically derive via stochastic dynamic programming the optimal transportation option selection and inventory ordering policy with the ELP. We further examine the value of ELP and identify the situations in which it is especially beneficial to adopt it. Robustness checking is conducted which proves that the theoretical findings derived in the main model are solid. Specific managerial action plans and managerial implications are developed.

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