Read this article researching the challenges in the fashion industry to respond to ever-changing consumer tastes. While reading, think about industries other than fashion where managing production capacity is an ongoing task.
Demand Side of the Apparel Chain
This part of the study focuses demand side of the textile-apparel chain
as a distinct part where it is separated from manufacturing operations.
DC operations are mainly non-production activities which are
concentrated to the activity of a retailer who is a brand owner as
defined by Cao et al., or it can also be treated as a distributor
and a retailer. Many fashion brands in western economy only deal
directly with this part of the chain and not directly involved in
manufacturing. Practically retailers or brands are detached from the
suppliers in most cases because often they source their products from
independent manufacturers. For example, Benetton uses both franchising
and sub-contracting, although Zara is vertically integrated which
maintains significant upstream clothing production, some retailers use
an independent trading company like Li and Fung, Levi's obtains products through own nominated
suppliers etc.