Combined contract for coordinating an RFID enabled supply chain

G. Partha Sarathi, S.P. Sarmah and M. Jenamani

International Journal of Services and Operations Management, 2013, vol. 15, issue 1, 95-122

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.

Keywords: radio frequency identification; RFID tags; supply chain coordination; quantity discounts; revenue sharing contracts; tag cost sharing; supply chain management; SCM; modelling. (search for similar items in EconPapers)
Date: 2013
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