Optimizing production allocation with simulation in the fashion industry: A multi-level hierachical optimization framework proposal

Production Planning and Control (PP&C) has been deeply analyzed in the literature, both in general terms and focusing on specific industries, such as the fashion one. This work add a contribution in this field presenting a multi-level hierarchical optimization framework for the fashion industry and an environment composed by focal companies and both exclusive and not-exclusive suppliers. The relevant aspect of this work is related to the peculiarities of this industry, where daily produced quantities differs from the long-term planned ones and where multi-brands suppliers capacity is unknown to focal companies. The proposed framework combine simulation and optimization models based on parameters, decision variables, constraints and Objective Functions (OFs) collected through a literature review. The framework has been developed in a parametrical way, in order to fit the peculiarities of the Fashion Supply Chain (FSC).