Industrial Engineering Journal ›› 2014, Vol. 17 ›› Issue (6): 62-69.

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A Comparison Simulation on RFID-Enabled Hybrid Push/Pull and (s,S) Strategy for MultiEchelon Inventory

  

  1. (Institute of Systems Engineering, Northeastern University, Shenyang 110819, China)
  • Online:2014-12-31 Published:2015-01-19

Abstract: The Internet of things and radio frequency identification technology (RFID) is an effective way to improve the performance of multiechelon inventory network of supply chain. The RFID can accurately count and orientate the products in the storage and on the way. Therefore, this technology provides a technical method for the RFID-enabled electronic Kanban system to make the inventory state of all the enterprises in supply chain remotely and realtime visible. Then the RFID-enabled electronic Kanban system can become the basis of the RFID-enabled hybrid Push/Pull control strategy. The three-echelon inventory network of supply chain distribution system is exemplified to design the RFID-enabled Push/Pull hybrid control strategy by which the manufacture is controlled by Push and the distribution and retailers are controlled by RFID-enabled Pull. This design is based on RFID-enabled electronic Kanban system and according to the structural characteristics of the supply chain and the functions of the enterprises in different stages when the supply chain runs. It should be noted that this design draws lessons from the optimal Push/Pull hybrid control structure applied in the single factory multistage production storage system. To verify the performance of the hybrid strategy, the strategy is compared with the (s,S) strategy based on the RFID. Considering the dynamic and stochastic nature of the supply chain system, the simulation models of system based on the principle of discrete event system simulation are designed and realized. Finally, the RFID-enabled hybrid Push/Pull control strategy is demonstrated to be valid and superior by simulation examples. It is assumed that this research provides reference for the management practice of the multiechelon inventory network in supply chain.  

Key words:  radio frequency identification technology, supply chain, multi-echelon inventory, push/pull, simulation