Modelling of supply chain of ready‐made garments in Bangladesh

Abstract

Despite supply chain revolution of the past decades, garments industries in Bangladesh struggle with production and shipment delays. Modelling of supply chain of ready‐made garments in Bangladesh is a challenge in our socio‐economic conditions because supply chain of garments is constrained by the availability of raw material, cotton, yarn, fabrics, and transportation facility. This research presents a system dynamics model of supply chain of garments in Bangladesh that is structured with inventory adjustment and demand driven to provide the right quantity at the right time at the right place. Verbal description, causal loop diagram, and stock flow diagram are hypothesized to generate the observed behaviour of ready‐made garments. Sensitivity analysis and stability of the model have also been addressed. Also, the model has been simulated to address the issue of the raw materials price instability and the policy issue of local supply of all the fabrics as well as local supply of all the fabrics with no transportation delay.

Determinants of Exports: A Gravity Model Analysis of the Bangladeshi Textile and Clothing Industries

“…In her dissertation, Ahmed (2014) found that women’s employment in the RMG sector has had significant effects on the welfare of the women’s families and living conditions. A new study reported that the supply chain of garments in Bangladesh is constrained by the availability of raw material, cotton, yarn, fabrics and transportation facility (Bala et al, 2019). Moreover, there are some health-related and psychological constrains.…”

“…The RMG industry is the backbone of Bangladesh economy and acts as a catalyst for the development of the country because the industry has contributed to overseas income, foreign exchange income, the empowerment of women, total export value and GDP. At present, the Bangladesh economy is largely dependent on the garment sector, earning 75 per cent to 78 per cent of foreign currency from this sector (Bala et al, 2019). The RMG sector is a US$25 billion industry, accounting for about 80 per cent of Bangladesh’s total export earnings (Khan & Milne, 2019).…”

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“…This requires investment in research activities aimed at probing customer needs and expectations and how new technologies would enable one to address such needs. When the first glimpse of new opportunities or threats appears, businesses with the ability to sense opportunities can interpret such information in terms of "market segments to target" and "technologies to deploy" terpreting the development and re-development of resources and capabilities to address rapidly changing business environments (Bala et al, 2019). The theory of organizational capabilities serves both an extension to and an attempt to overcome the limited notion offered by RBV (Collis, 1994;Winter, 2003;Ambrosini et al, 2009).…”

Construct of Social Capital on Perceived Decision Making Effectiveness in Strategic Supply Chain Decisions: With Special Reference to Selected Apparel Sector International Entities in Sri Lanka

“…One such example was the Nigerian Textile industry, where most of the local textile firms were shut down due to poor make or buy decisions made by the management, which has caused the increased cost of production lead to financial losses and products being not competitive along with the international firms (Okpala, Mlanga, Nwajiuba, Osanebi, & Ezemoyih, 2019). To specify the scope of the study, the Textile and Apparel industry in Sri Lanka has been selected because it is one of the oldest (Bala, et al, 2019) export industries in the global economy (Seram, Nanayakkara, & Lanaroll, 2019;Bala, et al, 2019), which caters the basic human need of clothing.…”