Digital Cost Control and Financial Decision Support in the Intelligent Textile Industry

Sujuan Wang

Article
2026 / Volume 9 / Pages 493-511
Received 1 August 2025; Accepted 21 August 2025; Published 5 March 2026
https://doi.org/10.31881/TLR.2026.493

Abstract
For the intelligent textile industry, whose manufacturing processes integrate electronic components into textile substrates, significant cost control and financial decision-making challenges exist. These challenges arise from high supply chain complexity, rapid technological iteration, and market uncertainty. Traditional cost management systems, designed for conventional textile production, are ineffective in this hybrid manufacturing environment, leading to distorted cost information and flawed financial strategies. This paper proposes a data-driven, dual closed-loop integrated management framework tailored for the intelligent textile industry. The first loop establishes a dynamic cost control model for the entire textile product life cycle by integrating Life Cycle Cost (LCC), Target Cost (TC), and real-time activity-based costing (RT-ABC). This model is intended to provide precise, real-time cost data directly from the textile manufacturing floor. The second loop features an agile financial decision support system (FDSS) that utilizes this granular production data to power advanced models, such as real options valuation for R&D projects and dynamic pricing for textile products. By systematically linking real-time manufacturing costs with strategic financial planning, the framework is designed to transform cost data into forward-looking insights. This research proposes a conceptual framework to explore how digital technologies could potentially address critical cost dilemmas in textile R&D, supply chain, and hybrid textile-electronics manufacturing, aiming to enhance the competitive advantage of enterprises in the modern textile industry. A conceptual case study illustrates the framework’s application and potential.

Keywords
smart textiles, textile industry, cost control, financial decision support system, intelligent manufacturing