Korean Management Science Review (경영과학)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Analysis of Textile Supply Chain Network with ODM-OEM Hybrid Production System in FTA Environment

FTA 환경에서 ODM-OEM Hybrid 형태의 섬유류생산시스템의 공급망 분석

  • 변태상 (넥센타이어(주) 영업기획팀) ;
  • 오지수 (연세대학교 정보산업공학과) ;
  • 정봉주 (연세대학교 정보산업공학과)
  • Received : 2012.09.12
  • Accepted : 2012.12.17
  • Published : 2013.03.31
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Abstract

This paper presents a supply chain framework with the ODM (Original Design Manufacturing)-OEM (Original Equipment Manufacturing) hybrid production of textile industry in FTA (Free Trade Agreements) environments between Korea and other countries. The proposed supply chain framework with ODM-OEM hybrid production is a unique supply chain that has both domestic production with non-tariff advantages in FTA environment and oversea production with low labor costs. To investigate the validity of the proposed supply chain, we first construct its strategic profit model and supply chain planning and then show that each member of supply chain network-yarn manufacturer, fabric manufacturer, and apparel manufacturer-can maximize their own profits without conflicts among the members. The efficiency of the ODM-OEM hybrid production system is analytically verified in comparison with the general OEM and ODM production model using profit models. Comprehensive numerical examples are provided to illustrate the advantages of the proposed system.

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References

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