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Exploring the impact of RFID technology on supply chain

English Abstract

Motivated by radio frequency identification (RFID), it has been heralded as a major breakthrough to enhance the efficiency of a supply chain. This dissertation mainly aims to explore the impact of RFID on supply chain management, especially the prospects of RFID’s investment value. The following core research questions focus on addressing the current research gap, 1. What economic benefit can be achieved by employing RFID in the supply chain? 2. What investment incentives stimulate supply chain members to adopt RFID cooperatively? 3. What are the innovations of deploying RFID in the supply chain? First, we unlock the value of RFID under three scenarios according to whether the manufacturer and retailer realize the inventory inaccurate information caused by miscategorization, shrinkage of the shelf, and theft errors, with focus on optimal investment strategies to optimize ordering quantity and maximize profits. Moreover, we elaborate on the impact of information technology investment on complex products by establishing a three-stage supply chain model involving two suppliers, one manufacturer and one retailer involved in a Stackelberg game. The optimal cost threshold values of technology investment are also examined in centralized and decentralized scenarios utilizing quantitative and modeling methods. By analyzing and comparing the optimal profit with or without investment on information technology, a supply chain coordination model boosts the application of information technology. Furthermore, we introduce RFID to identify objects automatically and accurately in automotive manufacturing assembly system, and establish the architecture of a production management system and an integrated operation mode. Meanwhile, RFID iii investment strategies in a three-level automotive manufacturing supply chain involving multiple component suppliers, a single vehicle manufacturer, and multiple automotive 4S (sale, spare parts, service, and survey) store, are also presented in detail. The supply chain can be coordinated by establishing appropriate investment policy, especially investment subsidy rate. Lastly, we focus on the practical application of RFID to the dairy industry. Compared with barcode, RFID can monitor the raising process, feeding management and milk production information of dairy cattle safely and effectively control raw milk quality. Additionally, an equilibrium model estimates the product flow of the whole supply chain network and market price is set up through variational inequality. From the above description, this dissertation apparently has important theoretical value and great practical significance.

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Xu, Wei


Faculty of Business Administration




Radio frequency identification systems

Business logistics -- Management


Lian, Zhao Tong

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