RFID Technology In Two-Period Newsboy Supply Chain Coordination

Because of the severe situation of economic globalization and diversification of demand, the enterprises need to improve the level of supply chain management to enhance the core competitiveness. The supply chain management can meet the customers need and improve the overall benefit of the supply chain by optimizing business process and coordinating the upstream and downstream enterprises. Especially, the supply chain of perishable goods has a higher requirement on the supply chain management due to the perishable characteristics. Recently, the research of RFID technology is deeper and deeper in the supply chain management area. The RFID technology can improve the timely and accuracy of information, reduce cost and improve profits by making use of its characteristics, such as rapid and accurate.This paper analyzes the supply chain coordination model of perishable goods two-period newsboy under RFID technology based on the inaccurate inventory problem of supply chain. Firstly, this paper studies the domestic and international current situation of supply chain coordination, supply chain contract and RFID technology. And it also summarize the research production. Secondly, we introduce the research background and significance of this paper and make assumptions of the establishment of the model. The third part is the most important one in this paper. It analyzes the supply chain coordination of two stage newsboy model under different situations which can divided into whether using RFID technology or not, based on theory of dynamic programming. It proposes supply chain profit model which has one or two order opportunities and combines with revenue sharing contract and insurance contract to coordinate the supply chain. And we can obtain the relationship between of optimal order quantity and profit, parameters of contract coordination, inventory errors and the label unit cost of RFID. Finally, this paper illustrates the significance of the model by numerical examples.This paper analyzes the two-period newsboy model of perishable goods supply chain based on that the RFID technology can improve the accuracy of inventory. And it also draws some supply chain coordination model by combining with the sharing mechanism of supply chain. And it makes contribution to the effect of RFID technology in the supply chain management.