Integrating Behavioural Factors into the Fashion Renting Supply Chain: A Simulation-Based Approach

The fashion industry has a significant environmental impact. To minimize its effects, circular business models like fashion renting emerged. However, simulation models that combine supply chain operations with customer behaviour to assess environmental sustainability are still underexplored. This study develops a simulation model to evaluate how fashion renting supply chains perform when customer behaviours are integrated. Using a real-world use case, this research compares six scenarios with different rental periods, transport frequencies, and truck types. The results indicate that higher transport frequencies increase the share of renting among enjoyment-driven customers but can negatively impact sustainability. Notably, the findings demonstrate that fashion renting is not inherently more sustainable than traditional buying, presenting underperforming results in some scenarios. Only specific supply chain configurations successfully lowered aggregate emissions. This research highlights the importance of aligning supply chain design with behavioural factors to achieve true sustainability.