Supply Chain Network Design Considering RFID Adoption

This paper reports on the integrated supply chain network design with radio-frequency identification (RFID) technology. The proposed model seeks to maximize the total profits of a manufacturer, servicing multiple retailers through regional distribution centers (RDCs) by identifying the optimal area of influence and order quantity for each RDC using a two-phase approximation method. Simulation results indicate that when using RFID, increasing the order quantity leads to a decrease in the area of influence of each RDC. Our findings also show that RFID has a more pronounced influence on supply chains affected by inventory inaccuracy and demand distortion.