The Research On Incentive Mechanism In A Two-Echelon Supply Chain For Using RFID Under VMI Mode

The technology of Internet of Things, IO T, is entering into producing and consuming process speedily, which enable multi- level-depth visibility of resources within firms of supply chain, and further change economic features and information categories of nodes in supply chain. The technology of IOT brings new opportunities and challenges for supply chain management. RFID is one of the key technologies of Internet of Things, which plays an important role in the matching of the material flow and information flow. The upstream suppliers have gradually realized the trend of IOT, no matter out of their own development or partners’ order. Therefore, it has significant theoretical and practical sense to research the investment decision-making for using RFID technology, and the incentive mechanism that partners took.For a two-echelon supply chain system that consisted of one supplier and one retailer under VMI mode, this dissertation conducted a research on the influence of inventory shrinkage rate, RFID read accuracy rate and the interdependent relationship. It analyzed whether RFID could be adopted, and explored the condition of the contract if it could, with the use of newsvendor model, contract mechanism and evolutionary game.Firstly, the influence of inventory shrinkage and read accuracy rate have been analyzed by constructing the revenue models of retailer and supplier in the situations of adopting RFID and not adopting RFID. The results of theoretical analysis and numerical analysis indicate that both the shrinkage rate and the read accuracy rate exist the reasonable ranges that make the expected revenue of retailer and supplier increase; also the retailer has more motivation to promote the applications of RFID technology in supply chain.Then this dissertation discussed the situations which introduced commitment contract and price-discount sharing contract to the supply chain respectively. Compared with the situation without any incentive mechanisms, the expected revenue of both sides remain the same if the order quantity of retailer along with the commitment contract is small. But if the quantity that retailer ordered in advance is large, there are optimal quantity and optimal price discount coefficient which achieves the highest revenue of retailer and supplier.Finally this dissertation conducted a research on evolutionary mechanism of investment decision- making for using RFID technology, and explored the effects of the initial investment cost, excess income of RFID and the interdependent relationship, resulting in the conditions of optimal sharing ratio and related management inspiration theoretically. This dissertation provides the theoretical reference for each enterprise in the supply chain in decision-making for using RFID.