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Optimization of a Supply Chain

Christian Dior Couture

Written by A. Darmon

Paper category

Master Thesis


Business Administration>Supply Chain & Logistics




Today, all companies in the fashion industry are facing changes in supply and demand. Working in fashion means facing rapid changes, and the company's success or failure often depends on the company's ability to quickly adapt and respond to these changes. In addition to having to process large amounts of information, the company must also ensure the availability of all its products in all stores around the world while optimizing inventory levels. This research will focus on Christian Dior Couture, especially glasses. The immediate goal of the research project is to optimize inventory while maintaining sales. Out-of-stock rate information that crosses sales volume, inventory, and coverage enables supply chain managers to make decisions at store level and reference level to reduce inventory at the best value without affecting sales levels. In the future, in addition to optimizing the inventory of the current store, further research can be done to try to optimize the reorder quantity. The so-called supply chain is a group of people, companies and organizations involved in providing services or delivering products from suppliers to customers [1]. The difference between supply chain management (SCM) and pure logistics is that it is mainly a form of knowledge, which is also used for design operations and optimized management. This management includes designing the best possible task sequence (described by the term chain) and the good operation of the logistics system, as described in the specification. Therefore, the supply chain supports the overall management of materials Flow (or cargo). To this end, it directly manages related activities, or in any case may ensure close cooperation with stakeholders or related third parties to control/manage Finished products, work in progress, semi-finished products, raw materials involved [2] ... and: Resources (internal human resources or external service providers: suppliers, warehousing, warehousing, transportation, freight...). Equipment required to realize logistics services (warehouse, tools, machinery, material handling, cleaning vehicles, ...). • Supplies (packaging, consumables, energy and fuel sources...). Services (planning, warehousing, packaging, handling, transportation, export, customs, billing...). • Information system. In certain activities, logistics efficiency can establish a competitive advantage with competitors in the market, which is a key opportunity to increase sales and/or market share and increase or defend the company’s profit margins. Christian Dior SA (commonly referred to as Dior) is a French holding company founded in 1946 [4]. As the legacy of tailor Christian Dior (Christian Dior), in addition to ready-to-wear, the company has also carried out major businesses in the fields of cosmetics, skin care, perfume, fashion accessories, jewelry, leather goods, shoes and watches. Although the Christian Dior brand is still mainly used for women's products, the company also operates the men's Dior Homme division and the children's Dior baby brand [3]. Christian Dior SA is part of the Bernard Arnault Group. It is the largest holding company controlling LVMH and one of the largest companies in the global luxury goods industry. As of September 2010, the company has more than 200 stores worldwide with a turnover of more than 20 billion euros. Read Less