**2.2 Challenges of the proposed planning approach**

As detailed in **Figure 2**, the proposed approach is based on an integrated production-distribution planning at two decision levels while considering the specificities of the apparel supply chain. Thus, the approach involves decisions at the tactical and operational level and takes into consideration both POs and ROs. Also, the approach considers flexibility of production capacity to ensure a better match between supply and demand. We consider at the level of operational planning overtime and subcontracting activities to accommodate the internal capacity shortage caused by fluctuations of demand and short lead time of customer orders. The main goal of the current study is to reduce overall supply chain costs by approximately 10%.

**Figure 2.** *Hierarchical planning approach.*
