GLOBAL SOURCING AND TRANSPORT STRATEGIES OF FASHION COMPANIES: AN ECONOMIC MODEL FOR SUPPLIER SELECTION UNDER TIME CONSTRAINTS
Abstract
This paper examines the relationship between global sourcing strategies and transportation choices in the fashion industry under conditions of time scarcity. It is demonstrated that delivery time significantly influences firms’ economic performance due to its impact on product pricing and revenue generation. An economic-mathematical model is proposed that integrates sourcing geography, transportation mode, production costs, logistics costs, inventory holding costs, and markdown losses. The results reveal a trade-off between cost minimization and time responsiveness. Offshore sourcing reduces production costs but increases delivery time and revenue risks, whereas nearshoring improves responsiveness at higher production costs. The study shows that transportation choices act as a flexible adjustment mechanism under time pressure. Scenario analysis identifies threshold conditions under which firms switch transportation modes and sourcing strategies. The findings emphasize the importance of flexible and integrated supply chain management in time-sensitive industries.
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