Abstract: By introducing the strategic customer’s behavior into the fashion apparel supply chain, this paper studies its impact on the operation decisions. In a fashion apparel supply chain where customers anticipate future sales and choose purchase timing to maximize their expected surplus, based on the customers’ rational behavior, the bank and supplier make their decision on financial ratio and produce quantity. This paper extends the base model by taking the 3PL and retailer into account. With the screening of 3PL and the decentralize supply chain of retailer, we can achieve more optimal performance than centralize supply chain. The supplier and retailer are both better off.

Key words: apparel supply chain, strategic customer, newsvendor model, rational Equilibrium