Research On The Effects Of RFID Adoption On Logistics Network Design

To study an integrated three-level supply chain network design, thepaper utilizes operational management，supply chain management andlogistic network design approaches including logistics network modeling，operations research methods，optimization theory. The main problems thepaper studies are as follows：how to design a basic integrated three-levelsupply chain network; how to measure the impacts of RFID on supplychain logistic network and its quantification; how to decide the timing ofRFID adoption to supply chain and analyze its impacts. To solve theseproblems above, we propose two mathematics models of logistics networkdesign: the basic supply chain logistics network design model and thesupply chain logistics network design model under RFID adoption. Tomaximize the total profit of the integrated supply chain, the modeloptimizes the influence areas of every distribution center (DC) and theDC’s ordering quantity. By comparing the results of adopting RFID modeland not adopting RFID model, we analyze the influence of RFID adoptionon logistics network and decide the timing of RFID adoption.The main contents of our research are summarized in the following.Chapter one proposes the backgrounds, significance, framework andtechnique approaches of the paper. We conclude that low logistics cost hasa great significance for both the nation and companies; optimizing thelogistic network is becoming a core competitiveness for companies; RFIDtechnology has a great significant meaning to increase the performance ofthe logistics network, etc.Chapter two summarizes and reviews the main literatures about thelatest RFID technology, logistics network design and RFID adoption to supply chains. It also points out the main work and the shortages of thecurrent research.Chapter three builds the basic model of logistics network design. Thetechnique approach is based on the continuous modeling and the main ideais to divide the logistics network into several regions constraining that thedemands vary slowly in every region. As a result, the discontinuousvariables can be modeled into continuous variables. The model decides theoptimal DC influence areas and the ordering quantity to maximize the totalprofit of the supply chain.Chapter four builds the logistics network model under RFID adoption.Considering five factors of RFID adoption: the efficiency of thereplenishment process with respect to satisfying consumer, the unit holdingcost, the fixed facility cost of DC, the unit manufacturing cost and the leadtime, we proposes a logistics network design model. To maximize the totalprofit, the model determines the optimal areas of the distribution centersand ordering quantities for distribution centers. Numerical study isconducted to show the effects of RFID adoption on logistics network anddetermine the timing of RFID adoption.Chapter five summarizes the work of the research and points out theshortages of the paper and directions of future research.