Fast fashion industry has attributed the competitive importance to corporate competency for operating the supply chain in conjunction with synchronized sales, production and procurement planning as for the fluctuation of consumer demand. This study aims to provide a supply chain optimization model so that sales organizations in the fast fashion industry perform demand forecasting and establish a sales planning on which product manufacturing, goods buying, part material procurement would be performed in a synchronized manner. In particular, production, procurement and sales plannings were integrated using Rolling Horizon approach. The production and purchase planning was modeled to conduct production in accordance with an optimal production planning in consideration of the production capacity and utilization rate while performing sales activities after ensuring the visibility of available inventory in the future.
The unique feature of this research is to develop a suitable mathematical model and algorithm for the fast fashion business environment that would conduct logistics at close quarters by allowing companies in a cluster to share the results of sales-supply plan established for each product group with the suppliers of raw and subsidiary materials in real-time. The findings also suggest that the uncertainty of sales planning resulting from excessive sales target would be improved through the systematization of PSI management (Production, Sales and Inventory) to trace sales organizations that established an original sales planning by pegging the inventory resulting from production and purchase based thereon.