**4. Phase "analyze"**

At the end of the six-month simulations, we obtain a weekly production, storage and distribution schedule for the various products, taking into account the tactical model's assignments and the unforeseen and urgent demands that arrive at the operational level. The cumulative costs obtained for the first few weeks of the operational model applied on a rolling horizon, added to the tactical cost of production at overseas'subcontractor, obtained by the tactical model, represent the total cost of production, storage and distribution for the six months. This cost, as reported in **Table 1**, is evaluated to 2 864 K€.


**Table 1.** *Weekly logistics costs.* *Enhancement of Textile Supply Chain Performance through Optimal Capacity Planning DOI: http://dx.doi.org/10.5772/intechopen.96292*


#### **Table 2.**

*Production assignment*

Weekly costs represent the sum of production costs in regular hours, overtime and at local subcontractors added to the costs of storage, underutilization of internal production capacity and product deliveries.

Obtained results for the current situation show that production is mainly affected to Internal manufacturing units 90.5%. However, 8.9% are affected to overseas subcontractors as shown in **Table 2**.

Based on these obtained results, we notice, on one hand, a production allocation that leads to an overload of internal production capacity and costly overtime. On the other hand, some productions get started in overtime, especially when the internal production capacity over regular hours is partially used. This is mainly due to the due dates position of the POs through the month. Indeed, since the productions planned in the internal units over a month are detailed at the operational level by week, it seems mandatory in some cases to massively produce during the first weeks of the month to meet the predefined delivery dates. Consequently, it is necessary to produce in overtime some products that the production capacity during regular hours cannot meet. Meanwhile, for the remaining weeks of the month, the capacity of the internal production is under-utilized. In this case, the ROs, which arrive at an operational level, are assigned to the subcontractors since the internal capacity of production is fully used by the production of the pre-season items decided at the tactical level.

This obtained cost seems to be too high because decisions at the tactical level are made without taking into account what may arrive at the operational level as urgent and unforeseen ROs. This cost can be improved to be more competitive in the market through greater flexibility at a tactical level. This flexibility could positively affect the allocation of orders that arrive at an operational level.

To analyze the current situation of the textile and apparel supply chain and try to identify the root causes of the performance decrease in this field, we establish the following Ishikawa diagram shown in **Figure 5**.

Based on this analysis, we confirm that it is necessary to reduce lead times through better resource management and better planning that will reduce the operational workload on operators. Taking into account the specificities of this sector and the requirements imposed by markets and customers, it is essential to adjust to needs, as soon as they are presented, through a better flexibility of resources at a tactical level.

The 5 P tool (**Figure 6**) is also used to identify the root cause of the problem so that the required actions can be taken to improve performance.

It is quite clear now that the solution is to provide some flexibility at the tactical planning and not to allocate rigidly anticipated productions without allowing sufficient flexibility to place the orders that arrive at the operational level.

**Figure 5.** *Ishikawa diagram.*

**Figure 6.** *5P tool.*
