RFID Investment Research Of G Company On Supply Chain Of Fresh Agricultural Products

Fresh agricultural product(FAP) is a kind of perishable agricultural product. Thousands of tons of fruits and vegetables rot in the process of circulation in our country every year. RFID technology can achieve the purpose to decrease the loss in the process of circulation by supporting FAP data to be captured and identified automatically and accelerating the rate about the related logistics’ links of connection. However, using RFID technology needs to purchase appropriate equipment, applied software and RFID tag, which will bring the cost. RFID technology have two sides, the enterprises in FAP supply chain can’t see the return visually if they invest. So enterprises have to face the problem whether the RFID technology is deserved to invest.The paper focus on RFID investment of G company on supply chain of FAP. There include a centralized supply chain, a decentralized supply chain and a decentralized supply chain under a “revenue-sharing” contract in the paper. The study establishes the profit models of the three supply chains before and after investment in the RFID technique, compares them, and calculates the critical value of the cost of the RFID tags for G company to invest.The revenue-sharing contract may facilitate the coordination of the FAP supply chain. RFID application can reduce the loss rate of tilapia transportation and increase the production cost of tilapia as well as the utilization rate of RFID tag recycling. Furthermore, the RFID application itself can be simplified in the future. The more significant these three changes, the greater the willingness of G company to invest in RFID.