JOURNAL OF TEXTILE RESEARCH ›› 2008, Vol. 29 ›› Issue (11): 137-140.

• 管理与信息化 • Previous Articles    

Dynamic pricing strategy for apparel supply chain based on fashion indexes

XU Qi;WANG Xiaofeng   

  1. School of Glorious Sun of Business and Management;Donghua University;Shanghai 200051;China
  • Received:2007-11-05 Revised:2008-06-23 Online:2008-11-15 Published:2008-11-15

Abstract: Apparel is a seasonal and style-related product.In order to help enterprises to accurately project the market demand and adopt various advantageous pricing policies,this paper investigates a fashion indexes evaluation method for garment products by using principal components analysis(PCA) approach.A market demand model is developed to study the correlation of demand volume,product price and product value,and how they vary with fashion indexes.Optimal pricing model based on fashion indexes is established for sellers and the best retail pricing policy is determined according to the expected profits of the seller.On this basis,the differences between the finally delivered volume from the supplier and the expected volume should be taken into consideration and optimized profit model of the supply chain is discussed.By data simulation,it is demonstrated that the pricing policy based on fashion indexes can improve the profit of the supply chain.This study indicates that it is more seasonable to adopt the pricing policy based on fashion indexes,for apparel is a product which is directly related to fashion.

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