CIE53 | O18

Retail Inventory, Replenishment and Supply Coordination

Tuesday, 20 October | 10:45-12:15 GST

Room 3 (provisional) | Online

Chair: Malik Khalfan

Conference schedule

Paper #12

Optimizing Inventory Management in the Philippine Tropical Fabrics Textile Supply Chain

Ryan Evangelista, Klint Allen Mariñas, Charmine Sheena Saflor, Alana Gianne Mariñas and Michael Calamba

Presenting author: Ryan Evangelista

Abstract

The Philippine textile Industry faces significant contraction due to high power costs and foreign competition. This study focuses on Asia Textile Mills, Inc. (ATMI) and its transition toward sustainability using pineapple blended fabrics for pineapple leaf fibers (PALF) to comply withy the Philippine Tropical Fabric Law. Facing challenges in inventory costs and fluctuating demand, the research develops an optimized inventory management framework. Utilizing a quantitative approach, the study employs Time Series Analysis, Naïve Forecasting, and Moving Averages to align raw material procurement with market trends. Furthermore, it integrates ABC Analysis and Lean Principles to categorize inventory and reduce waste. Results demonstrate that driven forecasting and strategic supply chain integration significantly enhance operational efficiency, reduce overstocking, and bolster the global competitiveness of the local textile sector.

Paper #19

Balancing Hype and Continuity: Optimizing Inventory Levels for ‘Elevated Basics’ through ABC Analysis and EOQ Modeling on La Creación’s Heavyweight Apparel Line

Franz Julian Ailes, Jerson Carl Arcena, Jhan Ceddrick Castro, Jeremiah Ross Malinis, Edrhon Jacob Velayo, Klint Allen Mariñas and Michael Calamba

Presenting author: Edrhon Jacob M. Velayo

Abstract

Hybrid streetwear brands face a unique problem when balancing inventory, and La Creacion struggles to manage the steady demand for their basic shirts while dealing with the erratic sales of their hand finished art products. To find a practical purchasing strategy, this study implemented the ABC Analysis to group their inventory. Calculations were made with the Economic Order Quantity and Reorder Point. The results have shown that the basic shirts are Class A items that bring in the most money and demand strict control alongside high safety stocks. Meanwhile, the high risk art pieces are categorized as Class C and require minimal stock to avoid high holding costs. By using an appropriate mathematical approach, local micro, small, and medium enterprises can stop relying on intuition and build highly responsive operations that protect the company’s cash flow and keep them financially secure.

Paper #131

Demand Driven Inventory Planning For Quick-Commerce Apparel: A Case Study on Uncertain Demand

Khushi Goyal and Kaja Bantha Navas R

Presenting author: Kaja Bantha Navas R

Abstract

Quick-commerce apparel retail operates in an environment characterized by uncertain demand, short replenishment windows, and high service-level expectations. Traditional inventory planning methods used by many apparel brands are largely manual and reactive, often resulting in stock imbalances, stock outs, and excess inventory holding. This research develops a demand-driven inventory planning framework for quick-commerce apparel operations using historical sales analysis, PID-level product segmentation, and structured replenishment logic. The framework integrates normalization-based product prioritization with inventory control parameters such as reorder point (ROP), safety stock, and order-up-to level. Key performance indicators including Cycle Service Level (CSL), Fill Rate (FR), and Days of Stock on Hand (DS SOH) were used to evaluate the effectiveness of the proposed model. A pilot implementation demonstrated improvements in product availability and inventory alignment across high-performing products. The study highlights the importance of a data-driven inventory planning system for improving operational efficiency in fast-paced quick-commerce environments.

Paper #211

Single-vendor multiple-buyer supply chain model under quality of products, service level constraints, and optimal production rate

Asif Iqbal Malik

Presenting author: ASIF IQBAL MALIK

Abstract

In modern supply chain networks, multiple buyers often generate high and uncertain demand, making fixed production policies insufficient for achieving cost efficiency and maintaining product quality. This paper develops a single-vendor multi-buyer supply chain model that incorporates variable production rates, imperfect product quality, service-level constraints, and distribution-free lead-time demand. The unit production cost is assumed to depend on the production rate, and three alternative quality functions are proposed to characterize the relationship between production rate and process quality. The objective is to determine the optimal production and inventory policy that minimizes the total supply chain cost under a single-setup multiple-delivery framework. Closed-form analytical results and an efficient solution algorithm are developed to obtain the optimal decisions. Numerical examples and sensitivity analyses are presented to validate the model and investigate the effects of key parameters. The findings reveal that production-rate flexibility plays a critical role in reducing total supply chain cost while mitigating quality deterioration, providing valuable managerial insights for coordinated supply chain operations.

Paper #178

Regulatory Airspace Governance and Platform Coopetition: A Game-Theoretic Analysis for Dubai's Drone Delivery Market

Ganesh Balasubramanian, Areej Siddiqui, Mahmood Abdulsattar Ahmad and Sania Ashraf

Presenting author: Ganesh Balasubramanian

Abstract

We formulate the strategic interaction between the regulatory airspace governance and the platform competition in the emerging drone food delivery market of Dubai as a two-stage Stackelberg-Nash game. The regulator (Dubai Civil Aviation Authority), as a Stackelberg leader, sets the quota of airspace slots, the licensing fee per delivery, and the safety threshold to maximize social welfare. After observing the regulatory decisions, two competing food delivery platforms, (Keeta Drone and Talabat), simultaneously choose delivery prices and drone fleet investments as Nash competitors, subject to a shared airspace capacity constraint that links their costs through a congestion externality. We obtain a closed-form Subgame Perfect Nash Equilibrium, and reveal five key propositions characterising the (i) airspace Tragedy of the Commons, (ii) optimal licensing fee, (iii) self-reinforcement of Keeta's cost advantage through coopetition, (iv) strategic complementarity of fleet investments, and (v) safety-investment Pareto complementarity. Finally, using a numerical analysis considering Dubai market data, we quantify welfare losses from market asymmetry, and suggest optimal regulatory policies to DCAA.