We study in this paper the Quick Response (QR) policy in atwo-echelon single-manufacturer single-retailer supply chain witha fashion product and dual information updating. To be specific,under Quick Response, a fashion retailer can collect marketinformation towards the sales of a pre-seasonal product whosedemand is closely related to the demand of the seasonal product.This information is then used to update both the unknown mean andunknown variance for the seasonal product's demand by Bayesianapproach. We consider the situation that there are ordering andproduction costs uncertainty and differences. After deriving theanalytical model, we show the conditions under which QR isbeneficial to the supply chain. Measures that can be taken tocreate Pareto improvement scenario in the supply chain and theindividual echelons are discussed. Managerial insights aredeveloped.
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Tsan‐Ming Choi (2006) studied this question.