Decisionmaking of RFID Technology on Fresh and Live Agricultural Products with Stochastic Demand

Abstract

Abstract: A study is conducted into a singleperiod twolevel fresh and live agricultural product (FLAP) supply chain consisting of a manufacturer and a retailer. The positive effects of RFID on FLAP wastage from quantity and quality are considered; the impacts of cost of RFID tag on the profits of the upstream company and the downstream company along the supply chain with stochastic customer demand are discussed; the optimal expected profits and the order quantity, respectively of the companies with and without RFID technology in the centralized supply chain model as well as in the decentralized supply chain model are analyzed and the critical value of RFID technology in the two models obtained. The conclusion shows that the critical values of RFID technology of companies are the same in both the centralized decentralized supply chain and that the more significant effect the RFID technology has on FLAP circulation wastage from quantity and quality, the more willing the company will be in using the technology.

Key words: supply chain, RFID , technology, fresh and live agricultural products, decisionmaking

MA Yunfeng, HUANG Yaoyu, ZHANG Ruijun. Decisionmaking of RFID Technology on Fresh and Live Agricultural Products with Stochastic Demand[J]. Industrial Engineering Journal .

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