Font Size: a A A

Robus Optimization In A Multi-Periods Or Multi-Products Newsvendor Model With RFID Technology

Posted on:2016-08-14Degree:MasterType:Thesis
Country:ChinaCandidate:L Y ZhouFull Text:PDF
GTID:2309330467992558Subject:Logistics Engineering
Abstract/Summary:PDF Full Text Request
With the development of information technology and economic globalization, companies are facing a more complex and competitive market environment. Tradition focus on single product quality.function and distribution channel has been expanded to the competition of supply chain included logistics, capital flow and information flow. Concept of supply chain management put forward in1980s tried to seek out the effective strategies of supply chain operation with guaranteeing every member’s profit. Supply chain contracts have been the most effective way of achieving coordination, while revenue sharing is one of whose making difference. RFID is a new field of supply chain research. This technology can improve inventory accuracy and ensure item location.The purpose of this research is to solve the high cost problem by revenue sharing contract when RFID is implemented in retail supply chain, and offer suggestions to manufacturers and retailers about decision on RFID investment.In this paper we consider the RFID’s application incentive mechanism in a supply chain, and try to use RFID technology to eliminate inventory inaccuracy. We develop a robust max-min profit and min-max regret formulation for a two-period newsvendor problem as well as a multi-products newsvendor with budget constrain. Unlike other research applying probability density functions, the custom demand here is described in an interval form, which only needs both a lower and an upper bounds for the uncertain demand with a different realization at each period. We get the optimization solution for single period problem and extent it to the two-period one, through which we can solve the problem by dynamic programming and robust optimization method. We find that the best order quantity for the second period is given or determined by the demand realization of the first period. Finally, an incentive mechanism is offered to evaluate whether the RFID is profitable in a current market setting and an explicit expression of the action and earnings is given.
Keywords/Search Tags:RFID, Robust Optimization, Inventory inaccuracy, incentive
PDF Full Text Request
Related items