Combined contract for coordinating an RFID enabled supply chain
by G. Partha Sarathi; S.P. Sarmah; M. Jenamani
International Journal of Services and Operations Management (IJSOM), Vol. 15, No. 1, 2013

Abstract: In this paper, a model is developed to coordinate a radio frequency identification (RFID) enabled supply chain considering revenue sharing (RS) and quantity discounts (QDs) contracts. The paper demonstrates that the proposed combined contract model coupled with tag cost sharing mechanism achieves perfect coordination. Furthermore, it establishes the condition under which RS and QD contracts with tag cost sharing mechanism can be implemented in RFID enabled supply chain. Moreover, a numerical study is conducted to demonstrate the model. Finally, sensitivity analysis is performed to delve into the impact of various parameters such as responsiveness, tag cost, revenue sharing fraction and demand variability on supply chain coordination.

Online publication date: Mon, 28-Apr-2014

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