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Commercial Used Apparel Collection Operations in Retail Supply Chains
عملیات جمع آوری پوشاک دست دوم تجاری در زنجیره های تأمین خرده فروشی-2021 Motivated by the commonly observed commercial used apparel collection (UAC) programs in the
fashion retail supply chain operations, this paper analytically explores the associated operational challenges
that firms face. First, in the basic model, we consider the case when a fashion retail brand promotes its UAC
program and collects the used apparel from consumers. Depending on the conditions of the collected apparel
products, the fashion retail brand will classify and either donate them for charity or send them to
remanufacturing. For either case, the fashion retail brand gains a benefit. We analytically derive in
closed-form the optimal promotion effort and study the mechanism for “profit” coordination. Our results
indicate that many traditional supply chain contracts fail to achieve “profit” coordination. Thus, the effort cost
sharing (ECS) contract is proposed and proven to be effective for “profit” coordination. Finally, to check the
robustness of findings from the basic model, we examine various UAC practice related extended models, such
as i) consumer coupon offering, ii) “no remanufacturing” model, iii) consumer heterogeneity in environmental
consciousness, iv) own-brand collection vs any-brand collection. Our findings show that the qualitative
insights continue to hold in the extended scenarios. Some novel scenario-dependent findings are also obtained.
Insights derived in this paper not only contribute to the literature but also provide scientifically sound
managerial guidance and insights to practitioners on how UAC programs can be best operated. Keywords: Supply chain management | used apparel collection | socially responsible operations | promotion effort. |
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