Table of Contents Introduction 2 1. Supply Chain Management of Textile Industry 3 2. Textile Industry and flow of Product and Information 4 3. Up Stream Operation of SCM in Textile Industry 5 3.1 Raw Fiber: 5 3.2 Yarn 6 3.3 Grey Fabric 6 3.4 Finished Fabric 6 4. Demand forecasting in upstream Supply chain management 7 5. Bullwhip effect 8 5.1 Causes of the Bullwhip Effect 9 5.1. a Demand Forecast Updating 9 5.1. b Order Batching 9 5.1. c Price Fluctuation 10 5.1. d Rationing and Shortage Gaming 10 6. Supply chain decisions 11 6.1 Location decisions 11 6.2 Production decisions 11 6.3 Inventory decisions 12 6.4 Transportation decisions 12 7. Vertical Integrated Supply Chain Management in Textile 13 Bibliography 14

Introduction
Supply chain management is the term used to describe the management of the flow of materials, information, and funds across the entire supply chain, from suppliers to component producers to final assemblers (or manufacturers) to distribution (wholesalers, warehouses and retailers), and ultimately to the consumer. There are several reasons behind the increased interest in the management of supply chains after the 1990s. Firstly, companies have been moving away from vertical integration, and moving towards specialization, thus having the need to deal with, and rely on, more outside sources. In order to reduce production costs, most textile firms have already outsourced production of their goods to low-cost countries, and subcontractor companies have taken on some production steps. Thus the structure of textile supply chains has become even more complex.
Traditional Supply chains view flow of goods from upstream raw material suppliers through manufacturing processes and on to the customers. In the textile supply chains, one might expect to start with raw materials such as cotton,