Capacity apparel supply chains

This shows that improving lead times and enabling decisions under a lower demand forecast error may require coordination agreements between members of the apparel supply chain. Once such coordination agreements are estabhshed, the access to manufacturing capacity closer to demand enables improved competitiveness of the apparel supply chain. Notice that all four Cs played a role in improving the supply chain. 

This scenario occurs in the real world every day. In an effort to avoid poor customer service, elements of supply chains do exactly the same thing. Ironically, the result of these actions is even worse customer service. The actual fluctuation in monthly demand in the automotive industry, for example, is less than 10%. However, second and third tier suppliers are constantly adjusting capacities by as much as 50%. In the textile and apparel industries, the effect of seasonal fluctuations only compounds the same problems. 

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