I.

Introduction
Saigon 3 Garment Joint Stock Company is one of the leading garment manufacturing and exporting
companies in Vietnam, specializing in all kinds of jeans, khaki, and sports pants with a total output of
more than 12 million units per year. Saigon 3 always places their emphasis on product quality and service
towards customer satisfaction as the foundation of the company’s operations. It has brought the company
a sustainable and effective cooperation with its partners and has many opportunities for development and
success over the year.
A supply chain consists of the series of activities and organization that materials move through on their
journey from initial suppliers to final customers. Sai Gon 3 Garment supply chain is one of the significant
factors contributing to its success with 7 main elements:

Raw Garment
Warehouse Distribution
material/Farmer factory

Input

Output

Old products
Customers Stores
collectors

Retail

Wholesale

Figure 1. The Saigon 3 Garment Supply Chain.

Online
Shopping

Although most Vietnam garment factories have received fabric from overseas manufacturers, Saigon 3
Garment Joint Stock Company has mainly used domestic material cloth, which has made its production
less affected by the general garment market. In the company’s supply chain, firstly, the raw fabrics are
harvested before being transported to the garment factory for processing by giant shipping containers.
Then, after the raw materials are made into finished products (completed pairs of jeans), they are
immediately packaged in this factory. After that, the employees take responsibility for inventory and
distribution to distribution center. Next, the company will distribute products to lower distribution
channels: wholesalers, retailers, online stores, etc, while wholesalers are the main distribution of Saigon 3
Garment Company. The final element is the customers who directly utilize the products before it becomes
old product for recycling.
Saigon 3 Garment Joint Stock Company has successfully built an efficient fabric supply chain in
Vietnam. Although, each element in supply chain has its own role, their operations are based on the
closely linked. Through those criteria, we decide to dick deeper by doing the research about Sai Gon 3
Garment Joint Stock Company, especially its supply chain. The main object is the aggregation planning
for this company in 2021 to solve the production planning problem of the company in 2019 and 2020.

II. Methodology
In 1986, Saigon 3 Garment Enterprise was established in District 3 and Thu Duc district with the nature
of the Union of Garment factories in Ho Chi Minh City. The factory was transformed into Saigon 3
Garment Joint Stock Company in 1990; up to now, the company has established a Completion Center in
Thu Duc district in Ho Chi Minh City.

Through many years of operation, the company’s employees have a lot of experience in analyzing and
managing the production of products which minimize the total cost that is spent by the company.
However, in the previous year, the company still had some shortcomings leading to the imbalance in
working days among workers.
For that reason, our group uses aggregation planning in Chapter 4 of Principles of Logistics and Supply
Chain Management course to solve the problem of Saigon 3 Garment Joint Stock Company and create the
new planning in 2021. In this report, we decide to analyze the data of hired workers, fired workers,
overtime of quantity, inventory quantity, their costs, and the total cost.
Two sales reports are shown below:

Month Chain Working Requiremen Sales (USD) Needed Total

 Number days t Production Workers workers
1 17 26 413,217 857,752 596 1020/1100
2 17 12 535,631 365,462 598 1050/1130
3 21 27 562,382 928,941 792 1287/1338
4 24 23 612,561 857,672 803 1334/1382
5 26 26 615,922 1,110,659 852 1403/1452
6 26 26 620,166 1,131,414 881 1456/1506
7 26 26 525,676 852,266 872 1460/1510
8 26 24 539,886 794,265 847 1426/1475
9 26 24 506,121 900,383 843 1434/1480
10 26 27 532,205 1,000,668 840 1414/1476
11 26 26 563,416 1,096,884 837 1436/1481
12 26 26 516,511 1,047,625 823 1414/1471
Total 6,543,694 10,943,991 9584

Table 1. The sales of Saigon 3 Garment Joint Stock Company in 2019.

Month Chain Working Requiremen Needed Total

Number Days t Production Sales (USD) Workers workers
1 21 26 432,348 849,391 675 1201/1248
2 21 12 186,153 346,901 670 1182/1214
3 21 27 504,296 833,913 667 1240/1295
4 21 23 423,303 698,412 663 1215/1277
5 20 26 509,828 873,528 650 1205/1237
6 20 26 427,625 844,943 636 1195/1234
7 20 26 391,333 796,715 632 1178/1235
8 20 24 304,863 630,330 627 1173/1230
9 20 24 304,739 599,599 628 1178/1232
10 20 27 386,629 751,900 621 1170/1225
11 20 26 381,953 742,789 623 1173/1225
12 20 26 324,048 687,406 619 1170/1220
Total 4,577,118 8,655,827.00 7711
Table 2. The sales of Saigon 3 Garment Joint Stock Company in 2020.
According to both of table of sales, we recognize that the number of working days on chain number 17
and 21 is much less than that of working days on the other chains resulting in the wasted machine
resources and difficulty managing an entire production line.