The Cost-sharing Of Adopting RFID Technology Supply Chain Model With Option Contract

In recent 20 years,the application of ERP software,RFID(Radio Frequency Identification)technology,communication system and Internet technology have made a sweeping change taken place in supply chain management.If organizations can make a good use of these technologies effectively in practice,the organizations will performance well in the supply chain competition.Since its debut,the advantage of RFID technology in information processing has attracted the attention of enterprises and academia.RFID technology is a new information technology,which has been widely applied in various fields,such as information input,data storage and data collection.As a means of high-tech,it can make it possible that entity objects can be tagged effectively and recognized automatically,which can have information both collected and processed faster and more accurately.RFID has gradually become a necessary technological means for manufacture to improve the level of the supply chain management.RFID technology is not developed and promoted rapidly in the supply chain as expected,since it is difficult to coordinate supply chain.We don't know how to keep balance between supply chain upstream and downstream in investment costs and benefits arising from the use of RFID technology.Therefore,if we can work how a scientific investment strategy and income distribution strategy,it will not only help promote RFID technology,but also improve the economic and social efficiency.In this paper,a supply chain system composed of a single supplier and a single retailer is taken as the research object.In the process of cooperation between the retailer and supplier,the retailer is in a strong position to lead the whole process.Retailer requires supplier to use RFID technology with the purpose of the better performance of supply chain.At the meanwhile,in order to achieve cooperation with retailer,supplier has no choice to apply RFID technology in supply chain.But supplier can decide the level of application of RFID technology,such as the different scale,different costs,different the number of RFID tags and so on.Nevertheless,because of the inconsistency between the retailer and supplier,it always can't achieve a state of harmony in the supply chain system.In order to solve the problem of supply chain system coordination and help supplier to determine the optimal level of application of RFID technology,this paper adopts the supply chain option contract which is widely used in supply chain coordination,and establishes the supply chain option contract model based on RFID technology.Besides,in order to achieve the perfect coordination of the supply chain,the model has been further optimized to establish a supply chain option contract model based on sharing the investment cost of RFID technology.First of all,according to the topic of this research,the domestic and foreign literature related to RFID technology and supply chain management are reviewed.Four aspects are chosen to carry on the literature review:the application of RFID technology in supply chain management,the game and coordination research of the supply chain applied RFID technology,the game and coordination research of supply chain based on option contract,the game and coordination research under loss aversion of supply chain option contract.And evaluation will be given on the current research results.Secondly,the two echelon supply chain system with a retailer in a strong position is taken as the research object.In order to get the opportunity to cooperate with retailers,supplier has no choice to invest in RFID technology in the supply chain system,but have the right to choose different level of application of RFID technology.For purpose of coordination of supply chain,this part establishes the supply chain option contract model based on RFID technology.In this part we will carry out research on Retailer's order quantity,the degree of implementation of RFID technology,RFID technology investment cost sharing and supply chain coordination,etc.Thirdly,we will construct supply chain coordination model based on RFID technology considering the decision makers with loss averse preference.In this part we will carry out research on Retailer's order quantity with loss averse preference,the degree of implementation of RFID technology,RFID technology investment cost sharing and supply chain coordination,etc.Finally,the research contents of this paper are summarized,and the conclusions of this study are given,and the future research directions are prospected.