Coordinating the retail supply chain with item‐level RFID and excess inventory under a revenue‐cost‐sharing contract

Abstract

This paper considers a supply chain consisting of one supplier and one retailer who jointly invest in item-level radio frequency identification (RFID) by considering their demands and inventories. Since the supplier can be negative to adopt RFID, the main objective of this study is to design an effective mechanism that maximizes the profits of both players and the whole supply chain by implementing item-level RFID. For this objective, we propose a novel revenue-cost-sharing (RCS) contract based on the bargaining game as the incentive to encourage the implementation, and numerical results show that the RCS contract is considerably more effective than the wholesale-price contract for supply chain coordination. Moreover, we show that the retail supply chain can be coordinated perfectly under the RCS contract when the thresholds of the revenue/cost sharing rates are set appropriately. This study provides significant managerial insight into the incentive and coordination strategy to implement item-level RFID in the retail supply chain.

Mechanisms of cooperation between airlines and online travel agencies for flight crowdfunding

“…By introducing the information sharing, Cai et al (2020) modeled two different warranty policies based on which party provides the warranty: manufacturer warranty and supplier warranty by considering that warranty costs are shared between the supplier and the manufacturer. Li et al (2021a) proposed a novel revenue-cost-sharing (RCS) contract based on the bargaining game by combining revenue-and cost-sharing contracts. They showed that the RCS contract is considerably more effective than the wholesale-price contract for supply chain coordination in maximizing the profits of both players and the whole supply chain.…”

“…Li et al. (2021a) proposed a novel revenue‐cost‐sharing (RCS) contract based on the bargaining game by combining revenue‐ and cost‐sharing contracts. They showed that the RCS contract is considerably more effective than the wholesale‐price contract for supply chain coordination in maximizing the profits of both players and the whole supply chain.…”

A Complete Flow of Miniaturizing Coil Antennas Based on Matching Circuit

“…Corresponding to Figure 2, CA's equivalent resistance in the series mode named R s_ant can be achieved by multimeter in measurement and by a software simulator in simulation. Furthermore, CA's equivalent resistance in the parallel mode named R p_ant can be achieved by the following equation, Equation (2) [14]:…”

Ordering Policy of Two-Stage Newsvendor Model for Fresh Retailer under RFID Investment

“…Yan et al [50] studied the impact of RFID application and supply chain coordination on the triple bottom line of sustainable development including corporate profit, social responsibility, and environmental responsibility that were analyzed. Li et al [51] considered a supply chain consisting of one supplier and one retailer who jointly invest RFID by considering their demands and inventory. ey found that the retail supply chain can be coordinated perfectly under the RCS contract when the thresholds of the revenue/costsharing rates are set appropriately.…”