Item‐Level RFID in the Retail Supply Chain

Analyzing the proliferation of item‐level RFID, recent studies have identified the cost sharing of the technology as a gating issue. Various qualitative studies have predicted that conflict will arise, in particular in decentralized supply chains, from the fact that the benefits and the costs resulting from item‐level RFID are not symmetrically distributed among supply chain partners. To contribute to a better understanding of this situation, we consider a supply chain with one manufacturer and one retailer. Within the context of this retail supply chain, we present analytic models of the benefits of item‐level RFID to both supply chain partners. We examine both the case of a dominant manufacturer as well as the case of a dominant retailer, and we analyze the results of an introduction of item‐level RFID to such a supply chain depending on these market power characteristics. Under each scenario, we show how the cost of item‐level RFID should be allocated among supply chain partners such that supply chain profit is optimized.     

Inventory Record Inaccuracy,Double Marginalization,and RFID Adoption

Most retailers suffer from substantial discrepancies between inventory quantities recorded in the system and stocks truly available to customers. Promising full inventory transparency, radio frequency identification (RFID) technology has often been suggested as a remedy to the problem. We consider inventory record inaccuracy in a supply chain model, where a Stackelberg manufacturer sets the wholesale price and a retailer determines how much to stock for sale to customers. We first analyze the impact of inventory record inaccuracy on optimal stocking decisions and profits. By contrasting optimal decisions in a decentralized supply chain with those in an integrated supply chain, we find that inventory record inaccuracy exacerbates the inefficiencies resulting from double marginalization in decentralized supply chains. Assuming RFID technology can eliminate the problem of inventory record inaccuracy, we determine the cost thresholds at which RFID adoption becomes profitable. We show that a decentralized supply chain benefits more from RFID technology, such that RFID adoption improves supply chain coordination.     

A review of RFID technology and its managerial applications in different industries

Radio frequency identification (RFID) is an emerging technology that is increasingly being used in supply chain management. RFID technology plays an important role in supporting logistics and supply chain processes because of their ability to identify, trace and track information throughout the supply chain. The technology can provide suppliers, manufacturers, distributors and retailers precise real time information about the products. This accurate knowledge of the inventory would result in lower labor cost, simplified business processes and improved supply chain efficiency. If properly used, it has the potential to cut ordering lead time and cost on inventory control, increase the accuracy of inventory information, help avoid stockouts and boost the number of inventory turns. In this paper, we provide an overview of the current state of RFID applications in different industries and its impact on business operations. We provide extensive literature survey and develop a framework for future research areas in this field.     

基于返回策略的供应链网络竞争绩效研究

针对由多个供应商和多个零售商组成的结构可变的供应链网络,分别在零售商之间基于订货量以及价格两种竞争方式下,分析了供应商均不采用返回策略、部分采用返回策略以及均采用返回策略六种情景下供应链网络的竞争绩效。研究发现当零售商基于订货量竞争时,供应商采用协调策略对于其零售商客户及供应链均为占优策略,零售商更换供应商的成本将会影响供应商的收益以及采用协调策略的积极性;当零售商之间基于价格竞争时,返回策略在一定程度上仍能够激励零售商增加订货量,且对供应链渠道的利润绩效及其稳定性均具有一定的改善作用。     

Managing Supply Chain Execution: Monitoring Timeliness and Correctness via Individualized Trace Data

Improvements in information technologies provide new opportunities to control and improve business processes based on real‐time performance data. A class of data we call individualized trace data (ITD) identifies the real‐time status of individual entities as they move through execution processes, such as an individual product passing through a supply chain or a uniquely identified mortgage application going through an approval process. We develop a mathematical framework which we call the State‐Identity‐Time (SIT) Framework to represent and manipulate ITD at multiple levels of aggregation for different managerial purposes. Using this framework, we design a pair of generic quality measures—timeliness and correctness—for the progress of entities through a supply chain. The timeliness and correctness metrics provide behavioral visibility that can help managers to grasp the dynamics of supply chain behavior that is distinct from asset visibility such as inventory. We develop special quality control methods using this framework to address the issue of overreaction that is common among managers faced with a large volume of fast‐changing data. The SIT structure and its associated methods inform managers on if, when, and where to react. We illustrate our approach using simulations based on real RFID data from a Walmart RFID pilot project.     

供应链企业投资RFID技术的博弈均衡研究

本文以两条竞争供应链（每条供应链均包含一个制造商和一个零售商）为研究对象,基于其是否投资无线射频识别（Radio Frequency Identification,RFID）技术,分别构建了两条供应链均不投资RFID（N情景）、供应链1投资RFID（S1情景）,供应链2投资RFID（S2情景）,及两条供应链均投资RFID（T情景）的收益模型,求解出相应的最优解并探讨供应链投资RFID的均衡策略。研究发现：相较于N情景,单条供应链投资RFID技术对其竞争供应链成员收益产生"负外部性"。当RFID成本较低时,供应链的均衡策略为T情景;当RFID成本较高时,错放率较低的供应链不采用RFID技术,其竞争供应链将采用RFID技术以提高自身的竞争力。     

Internal Infrastructural Impacts on RFID Perceptions and Commitment: Knowledge,Operational Procedures,and Information‐Processing Standards

For many firms, radio frequency identification (RFID) suggests not only a new alternative to existing tracking methods but also a means to a range of previously cost‐prohibitive internal control and supply chain coordination innovations. In any event, and even in light of possible external pressures to adopt, the full potential of RFID for an individual firm must ultimately be viewed in consideration with the infrastructural capabilities of that firm. Furthermore, because adoption decisions are fundamentally based on managerial perceptions, it is critical to consider how certain forms of infrastructure provide the necessary transparency into other infrastructural characteristics to augment such decisions. We use multisource survey data in this work to consider several elements that contribute to this infrastructure and subsequently to perceptions of RFID benefit and actual commitment to adoption. Results demonstrate that the complementary effects of these infrastructural capabilities significantly impact both perceptions of and commitments to RFID.     

A Field Study of RFID Deployment and Return Expectations

Radio Frequency Identification (RFID) technology promises to transform supply chain management. Building on previous research in information systems and supply chain management, this paper proposes a theoretical framework for RFID adoption and benefits, and tests the framework using data on u. s. firms. Our analysis suggests that there is a positive association between information technology (IT) application deployment and RFID adoption. We find that RFID implementation spending and partner mandate are associated with an expectation of early return on RFID investment, and a perceived lack of industry‐wide standards is associated with an expectation of delayed return on RFID investment. These results suggest that firms with broad IT application deployment and a critical mass of RFID implementation spending are more likely to report early returns from RFID deployments. This paper extends previous research to understand the relationship between organization characteristics and adoption and expected benefits of the emerging RFID technology.     

Mechanisms for Increasing Sourcing from Capacity‐Constrained Local Suppliers

The fresh produce supply chain is characterized by large (mainstream) farms that are located far from consumers, and capacity‐constrained (local) farms that are located close to the consumer. In this setting, we study: (i) how leadtime and capacity asymmetry between mainstream and local farms affect a retail grocer's order policy for fresh produce, and (ii) how various operational mechanisms can increase the amount sourced from local farms. We show that this supply chain structure is disadvantageous for local suppliers (farms) because it induces the retailer to treat the local supply as a de facto responsive supply without paying a premium for the responsiveness. This disadvantage is exacerbated when the retailer's objective is to achieve a high service level. We study three mechanisms that can improve conditions for local farms: working with an intermediary, backhauling, and a retail order policy, purchase guarantee, that explicitly supports local farms. The intermediary and backhauling mechanisms help the local farm by making local supply more attractive to the retailer, inducing her to order more locally sourced produce. The intermediary reduces the retailer's overstock and stockout costs whereas backhauling increases the average margin. The purchase guarantee order policy helps local farms at the expense of retail profit. However, we show that purchase guarantee and backhauling are complementary mechanisms that together can benefit the retailer and local farms.     

An integrative approach to assess environmental and economic sustainability in multi-tier supply chains

Abstract

Multi-tier supply chain sustainability is paramount to achieve corporate sustainability, due to the significant impacts from organisations beyond the focal firm boundaries and its direct suppliers. However, including environmental considerations within the dominant profit-centric logic of supply chain related decisions is prone to generate sustainability tensions. This work aims to support organisations address tensions between sustainability dimensions by adopting an integrative approach for sustainable supply chain management performance assessment thanks to an innovative eco-intensity based performance assessment method, which achieves a balanced consideration of environmental and economic performance in a weak sustainability perspective. The method, using primary data sourced from actual practice and featuring an indirect multi-tier approach with decentralised responsibilities across organisations, is applied to a case study of a machinery supply chain. The proposed integrative approach can support addressing sustainability tensions in the area of sustainable supply chain management, facilitate sustainable supplier evaluation and identify supply chain hotspots for operational improvement.     

Mean-risk analysis of radio frequency identification technology in supply chain with inventory misplacement: Risk-sharing and coordination

This paper investigates the application of radio frequency identification (RFID) technology to eliminate the misplacement problems in the supply chain, which consists of a risk-neutral manufacturer and a risk-averse retailer. By considering both fixed cost and tag cost of RFID implementation, we study the agents' incentives to adopt RFID in both uncoordinated and coordinated cases. We focus on analyzing the impact of risk attitudes on the agents’ incentives and on the supply chain coordination. The central semi-deviation is adopted to measure the retailer's risk attitude. In the uncoordinated case, we find that, in order to induce the retailer to adopt RFID, the manufacturer must assume more fixed cost if the retailer is more risk-averse. In the coordinated case, we first show that the standard revenue sharing contract does not always coordinate the channel. If the channel is coordinated, we observe that the agents’ incentives will be perfectly aligned and independent of the risk attitudes, if the revenue sharing ratio equals the fixed cost sharing ratio. Then we propose a risk-sharing contract that offers the risk protection to the retailer, to achieve the channel coordination. An interesting finding is that the manufacturer's incentive will not decrease with the tag cost, if she takes much risk from the retailer. The corresponding impacts of RFID adoption on the two contracts are also analyzed in this paper. Finally, a case study in a tobacco industry is presented to show the real RFID cost in practice.     

A model of the adoption of radio frequency identification technology: The case of logistics service firms

Globalization and advances in information technology represent both realities and opportunities for enterprises in the 21st century. This paper aims to broaden understanding of service innovation as a critical organizational capability through which the adoption of information technology influences firm performance. This study examines how the adoption of radio frequency identification (RFID) technology influences the operational performance of logistics service firms. We develop the RFID adoption model based on the interorganizational information systems (IOS) view of the firm that integrates the various strands of research into the framework. The study draws from the related information technology and interorganizational information systems literatures to explore organizational factors associated with the adoption of RFID. A model of the associations between information technology and interorganizational information systems use, social support, power structure, organizational readiness, procedural flexibility, and top management support is developed, and hypotheses are advanced about the relationships among these constructs. An empirical survey was conducted among 500 logistics service firms in Taiwan. A total of 131 valid observations were analyzed using the partial least squares technique. Results showed that RFID adoption has positive effects on business practices, which in turn improves operational performance. We address the value of certain interactive firm behaviors in RFID adoption and identify related constructs of RFID adoption in terms of their efficiency and value for logistics service firms. These results have implications for both education and practice.     

风险规避型供应链的收益共享机制研究

探讨了由风险规避型零售商与风险规避型供应商组成的两级供应链协作激励问题.首先研究了Stackelberg主从对策模型下风险规避型零售商与风险规避型供应商的决策行为,并分析了双方的风险规避系数对双方决策行为的影响.然后,研究了垂直一体化模型下风险规避型供应链的决策行为,同样分析了双方风险规避系数对供应链决策行为的影响程度.最后,提出采用收益共享契约机制来协调该供应链.并通过数值实验进一步分析供应商与零售商的风险规避系数对双方的决策行为及收益共享系数的影响程度.     

Performance Metric Portfolios: A Framework and Empirical Analysis

The widespread adoption of supply chain management principles suggests that managers recognize the importance of evaluating operational decisions holistically. However, it is often difficult to link specific operational practices to strategic level outcomes and in turn to corporate financial results. This presents problems for both managers and academic researchers attempting to justify the often high cost of operational improvement initiatives in terms of objective accounting metrics. This study provides evidence that it is possible to demonstrate linkages between carefully chosen portfolios of tactical, strategic, and financial metrics. Survey data from 118 manufacturers are used to evaluate hypotheses linking multilevel metrics of performance across three well‐established strategic foci. We present portfolios of metrics drawn from the literature and from the Supply Chain Counciľs supply‐chain operations reference model and related design and customer chain models. Our analysis suggests that metric portfolios in which tactical metrics are designed to match strategic‐level metrics, based on alignment with a specific strategic focus, provide clearer mechanisms for understanding performance linkages.     

基于RFID技术的供应链投资决策及协调策略研究

本文以单制造商和单零售商组成的两级供应链为研究对象,基于链上成员是否投资RFID技术,考虑四种情景:供应链成员均不投资RFID,仅零售商投资RFID,仅生产商投资RFID及供应链成员共同投资RFID。采用Newsvendor模型建立四种情景时链上成员的收益模型,得出Stackelberg均衡解和供应链成员的最优期望收益,探讨了RFID技术投资对各情景时链上成员收益的影响,得到了供应链成员共同投资RFID时的协调策略。研究表明:当RFID标签成本和零售商库存不准确率在相应的阈值内,零售商或制造商单独投资RFID技术均能提升自身收益,同时对链上其他成员的收益存在"正外部性";此外,收益共享契约能够有效地协调链上成员共同投资RFID技术后的供应链,并且该协调思想丰富并拓展了供应链投资RFID技术的协调研究。     

基于RFID技术的双供应链投资决策研究

本文考虑零售商主导的分别由一个供应商和一个零售商组成的两条竞争型供应链中,当两个供应商都未投资RFID技术、只有一个供应商投资RFID技术以及两个供应商同时投资RFID技术时,考虑供应商成本结构的差异,对比分析供应链的投资决策。由于模型解析解过于复杂,本文通过算例分析,着重考虑产品的替代率、RFID标签价格以及库存可获得率三个因素对供应链成员利润的影响。结果表明两条供应链对RFID技术的投资决策会因成本结构和产品替代率的不同而发生变化,其中在两个供应商生产成本差异较大且产品竞争强度较低时,生产成本较高的供应商更愿意投资RFID技术,而生产成本较低的供应商不愿意投资RFID技术,两个零售商则希望使用RFID技术,所以此时仅会有一条供应链上的成员达成一致,决定投资使用RFID技术。     

FROM BUYER TO INTEGRATOR: THE TRANSFORMATION OF THE SUPPLY‐CHAIN MANAGER IN THE VERTICALLY DISINTEGRATING FIRM

Using case study data, we describe how a large personal computer manufacturer changed its supply‐chain management strategy after outsourcing the majority of its design and manufacturing activities to a network of focused suppliers. To cope with this new structure, the firm created highly skilled generalists, “supply‐chain integrators,” who coordinate product development, marketing, production, and logistics from product concept to delivery across firm boundaries. We particularly focus on the skill‐set that characterizes these integrators. Finally, we use the case evidence, combined with previous theory, to suggest a specific program of research into coordinating product development across disaggregated supply chains.     

敏捷供应链背景下企业合作关系对企业绩效的影响

现有理论文献认为,良好的企业合作关系能够提高企业绩效,但对于其作用效果和作用路径仍缺乏实证研究的支持.本文以重庆市的242家企业为研究样本,通过因子分析和结构方程模型研究了企业合作关系、敏捷供应链和企业绩效三者之间的关系,验证了企业合作关系对敏捷供应链效益、企业绩效水平具有显著的正向影响,而敏捷供应链效益可以很好地提高企业的绩效水平.     

Misplaced Inventory and Radio‐Frequency Identification (RFID) Technology: Information and Coordination

Misplaced inventory is a major operational problem in many supply chains. Radio‐frequency identification (RFID) technology has been publicized as a promising solution for the misplaced inventory. Adoption of this technology has a fixed cost and variable cost of implementation, which can cause incentive issues in the supply chain. In this paper, we consider a supply chain under misplacement of inventory subject to uncertain demand. We study both centralized and decentralized cases and identify the conditions to coordinate the supply chain under implementation of RFID. We show that the incentives of the parties for investing in the technology are not perfectly aligned in the existence of the fixed cost of investment. Based on the relative payments of the parties for the fixed cost of investment, the incentives to adopt RFID can be characterized into regions, where we observe only one party or two parties benefiting from the technology when the tag price falls in a region specified in the paper. We further establish the effects of changes in mean and variance of a uniform demand on the incentives for investing in RFID and find that the incentives of the firms may indeed decrease as demand becomes more variable.     

Simulation Modeling and Analysis: A Collateral Application and Exposition of RFID Technology

RFID technology provides in‐depth, real‐time visibility into the status of assets throughout the supply chain. However, the deployment of RFID technology may have collateral value in the high‐quality data generated by these assets. This study explores the potential value of RFID data for tactical and strategic purposes and the redesign of processes within supply chain through the deployment of simulation modeling and analysis. We present a simulation study conducted at a regional hospital for which data related to trauma patient movement was collected with an RFID‐based system. We find that not only does this data serve as the basis for successful simulation modeling, but that RFID technology may address several data‐related challenges previously identified in the simulation literature.