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Optimal Decisions for Adoption of Item-Level RFID in a Retail Supply Chain with Inventory Shrinkage under CVaR Criterion
Joint Authors
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-17, 17 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-03-17
Country of Publication
Egypt
No. of Pages
17
Main Subjects
Abstract EN
This paper investigates the effect of item-level RFID on inventory shrinkage in the retail supply chain, which consists of a risk-neutral manufacturer and a risk-averse retailer.
Under conditional value-at-risk (CVaR) criterion, two different supply chain settings are discussed as follows.
In the centralized setting, we develop the models in both RFID case and no RFID case, respectively.
Comparisons between the two cases are made.
In particular, a sufficient condition is given to judge whether to adopt item-level RFID.
In the decentralized setting, we focus on discussing two different contract types including wholesale price contact and revenue sharing contract.
Finally, number examples and sensitivity analysis are given to illustrate the proposed models.
The results show that, for the centralized system, the sales-available rate, the recovery rate, and the tag cost are mainly the driving factors in evaluating the benefit of an item-level RFID.
In particular, when the sales-available rate and the tag cost are quite small and the recovery rate is higher, the supply chain partners’ profits obtained by investment for RFID are improved significantly.
For the decentralized system, under revenue sharing contract, Pareto improving outcome and coaffording risk can be achieved if the retailer sets an appropriate parameter for the manufacturer.
American Psychological Association (APA)
Xu, Chunming& Zhao, Daozhi. 2016. Optimal Decisions for Adoption of Item-Level RFID in a Retail Supply Chain with Inventory Shrinkage under CVaR Criterion. Discrete Dynamics in Nature and Society،Vol. 2016, no. 2016, pp.1-17.
https://search.emarefa.net/detail/BIM-1103582
Modern Language Association (MLA)
Xu, Chunming& Zhao, Daozhi. Optimal Decisions for Adoption of Item-Level RFID in a Retail Supply Chain with Inventory Shrinkage under CVaR Criterion. Discrete Dynamics in Nature and Society No. 2016 (2016), pp.1-17.
https://search.emarefa.net/detail/BIM-1103582
American Medical Association (AMA)
Xu, Chunming& Zhao, Daozhi. Optimal Decisions for Adoption of Item-Level RFID in a Retail Supply Chain with Inventory Shrinkage under CVaR Criterion. Discrete Dynamics in Nature and Society. 2016. Vol. 2016, no. 2016, pp.1-17.
https://search.emarefa.net/detail/BIM-1103582
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1103582