The Impact Of RFID Technology On Supply Chain Decision-making In The Case Of Inaccurate Inventory

With the further development of economy,the importance of supply chain management in modern industry and retail industry has been highlighted.How to improve the operational efficiency of the supply chain has been important.At the same time,the problem of inaccurate inventory is common in the supply chain.Therefore,how to effectively solve the problem of inaccurate inventory and improve the efficiency of supply chain have become the top priority.With the advancement of technology,Radio Frequency Identification(RFID)can solve many problems in the supply chain,but application of RFID technology will greatly increase the cost of an enterprise.Whether an enterprise should invest in RFID technology depends on the degree of influence of RFID technology,so it is inevitable to study the influence of RFID technology on supply chain decisions.This article studies a two-level supply chain that includes a manufacturer and a retailer,and establishes two kind of models focused on different research directions.Through systematic analysis,the use of supply chain management theory,newsvendor model,economic batch model,game theory and other theoretical methods to study the cost and profit of the two-tier supply chain,and analyze the impact of RFID technology on the supply chain.First,based on the classic newsvendor model,the inventory inaccuracy problem is considered,an improved mathematical model is established,and the random distribution of demand is used to study the influence of market demand in the supply chain on the supply chain operation strategy and obtain a balanced solution of the supply chain game.Then we build newsvendor model using RFID technology,and the model uses a wholesale price contract,cost sharing contract,the supply chain efficiency under the influence of multiple contracts will have great value.After the application of RFID technology,the cost and benefit of the supply chain can be accurately analyzed,and this part of the research supplements the deficiencies of previous studies,and it can help companies make more accurate decisions.On the other hand,the economic batch model research makes the demand known and constant,combines the order model with the production model,considers the inaccuracy of inventory,and solves the supply chain through two-stage negotiations to achieve a win-win decision.In the first stage,the manufacturer uses a series of nonlinear programming and Karush-Kuhn-Tucker(KKT)conditional solution models.In the second stage,the retailer solves the cost sharing contract and obtains the decisions before and after using RFID technology.We use comparative analysis and sensitivity analysis to visualize the analytical results and comprehensively discuss the optimization effect of ordering decisions on supply chain costs.The research can not only adapt to the technological development of the times,but also give reasonable suggestions to the supply chain.