Decision Analysis And Coordination Research Of RFID Application In Supply Chain Under The Internet Of Things Environment

With the rapid development and deepening of the Internet of things,its core technology-Radio Frequency Identification(RFID),as a new data capture technology,has attracted extensive attention in the field of supply chain management.RFID technology can improve the potential benefits of supply chain management by reducing inventory loss,improving process efficiency and speed,and improving information accuracy.The inventory inaccuracy is an important issue in supply chain management,and the visibility provided by RFID technology is a feasible intervention to reduce inventory inaccuracy.Hence,RFID technology provides a new choice for supply chain enterprises to improve their inventory management level and enhance their competitive advantages.However,when the decision-makers face the problem of RFID technology implementation,there are the lack of related theoretical basis and decision support.Therefore,this paper systematically and comprehensively studies the implementation decision of RFID technology in supply chain inventory management from multiple perspectives,which has important theoretical and practical significance.This paper examines one two-stage supply chain consisting of single manufacturer and single retailer,from the perspectives of channel structure and risk attitude,this paper studies the incentive mechanisms of supply chain members to implement RFID technology,and researches on the channel coordination,as well as risk decision.This paper adopts the single period Newsboy model and establishes the application model of RFID technology in supply chain,comprehensively and systematically analyzes the impact of the application of RFID technology on supply chain members' decisions,reveals the incentive mechanisms of supply chain members to implement RFID technology,and discusses the importance of the contract coordination in promoting the implementation of RFID technology.Firstly,this paper studies the implementation decision and channel coordination of RFID technology in dual-channel supply chain from the perspective of channel structure.This paper investigates one two-stage supply chain with inventory shrinkage problem,based on the single-period newsboy model,and analyzes the decision-making conditions for the implementation of RFID technology by supply chain members in a single retail channel.In addition,considering that the manufacturer introduces a direct sale channel into a single retail channel,this paper establishes the application model of RFID technology in the dual-channel supply chain.By comparing with the application of RFID in a single retail channel,this paper analyzes the influence of the introduction of direct sales channel on the decision of the dualchannel members to adopt RFID technology.This paper found that,compared with the single retail channel,the introduction of direct sale channel is conducive to promote the consistency of supply chain members' incentive to adopt RFID.However,the direct sales channel also brings negative impact to the retailer at the same time.Finally,this paper utilizes the product differentiation strategy and revenue sharing contract to analyze the coordination problem in the dual-channel supply chain under RFID.Secondly,based on the premise of the existence of dual channels,this paper considers that both the manufacturer and the retailer faces inventory shrinkage problems and they attempt to adopt RFID technology to eliminate inventory inaccuracy.This paper considers a Stackelberg game,and analyzes four possible RFID adoption strategies for manufacturers and retailers: no members adopt RFID,only the manufacturer adopts RFID,only the retailer adopts RFID,and both members adopt RFID technology,and derives the pricing decisions of supply chain members under the corresponding strategy.Through comparative analysis of these four strategies,this paper describes the equilibrium strategy of the implementation of RFID by the manufacturer and the retailer.Through numerical experiments,this paper explores the influence of channel competition on the adoption strategy of RFID.Then,this paper studies the application of RFID technology from the perspective of risk attitude.This paper considers a two-stage supply chain consisting of one risk-neutral manufacturer and one risk-averse retailer,and the retailer suffers from inventory misplacement and shrinkage problems at the same time.This paper also considers the fixed cost and variable cost of investment in RFID technology,and analyzes the situation that only the fixed cost is shared among supply chain members.This paper adopts the conditional value at risk(CVaR)criterion to measure the retailer's risk attitude,and establishes a Stackelberg game model.In the decentralized situation,this paper examines the incentive mechanisms for supply chain members to adopt RFID technology,and analyzes the impact of risk attitude on the application of RFID technology in the supply chain.This paper found that the incentive conditions for two supply chain members to adopt RFID are not completely consistent under the decentralized situation.When the order quantity is constrained by the risk attitude,there is a unique cost allocation ratio,such that the incentive conditions of the two members are perfectly aligned.When the risk-averse degree of the retailer is higher,the manufacturer should bear more fixed investment costs to induce the retailer to adopt RFID technology and obtain more benefits.Finally,this paper considers a two-stage supply chain composed of a risk-neutral manufacturer and a risk-averse retailer with inventory inaccuracy problems,and establishes a newsboy model under the CVaR framework,and analyzes the incentive condition of the supply chain to adopt RFID under the centralized situation.By introducing a revenue sharing factor,this paper examines the supply chain coordination problem based on revenue sharing contract before and after adopting RFID,and analyzed the influence of the retailer's risk attitude on the decision condition of the coordinated supply chain to adopt RFID technology.It is found that when the tag cost is sufficient small,with the reduction of risk-averse degree,it can incentive the coordinated supply chain to adopt RFID technology.Through numerical experiments,it is found that for the uniform demand distribution,supply chain members are more willing to adopt RFID technology in the coordinated situation.