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The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain
Wei Xu1; Zhaotong Lian1; Xifan Yao2
2013-06-19
Source PublicationMATHEMATICAL PROBLEMS IN ENGINEERING
ISSN1024-123X
Volume2013Pages:1-11
Other Abstract

Motivated by the complex product with the feature about error-prone assembly system and supply chain inventory inaccuracy, this paper elaborates on the impact of information technology investment on complex product by establishing a three-stage supply chain model involving two suppliers, one manufacturer, and retailer which carried out Stackelberg games. In addition, it not only compares the manufacturer and the retailer’s optimal decision and maximum profit under the situation of the information asymmetry and free information sharing, but also analyzes their market behavior and changes in market performance. Meanwhile, it points out that the downstream in supply chain masters more information about market demands compared to the upstream one. The optimal cost threshold values of technology investment are also examined both for the centralized and the decentralized scenarios utilizing quantitative and modeling methods. By analyzing and comparing the optimal profit with or without investment on information technology, it establishes a supply chain coordination model which boosts the application of information technology. At the same time, it offers the conditions on which the upstream and downstream enterprises can coordinate with one another. The results of this paper have contributed significantly to making the price and ordering decisions on whether RFID should be adopted among members of the supply chain. Finally, we present numerical analyses, and several extensions of the model are considered as well.

DOI10.1155/2013/271496
Indexed BySCIE ; SSCI
Language英語English
WOS Research AreaEngineering ; Mathematics
WOS SubjectEngineering, Multidisciplinary ; Mathematics, Interdisciplinary Applications
WOS IDWOS:000321345500001
PublisherHINDAWI PUBLISHING CORP, 315 MADISON AVE 3RD FLR, STE 3070, NEW YORK, NY 10017 USA
Scopus ID2-s2.0-84880173844
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Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
University of Macau
Corresponding AuthorZhaotong Lian
Affiliation1.Faculty of Business Administration, University of Macau, Macau
2.School of Mechanical and Automotive Engineering, South China University of Technology, Guangzhou, China
First Author AffilicationFaculty of Business Administration
Corresponding Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Wei Xu,Zhaotong Lian,Xifan Yao. The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain[J]. MATHEMATICAL PROBLEMS IN ENGINEERING, 2013, 2013, 1-11.
APA Wei Xu., Zhaotong Lian., & Xifan Yao (2013). The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain. MATHEMATICAL PROBLEMS IN ENGINEERING, 2013, 1-11.
MLA Wei Xu,et al."The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain".MATHEMATICAL PROBLEMS IN ENGINEERING 2013(2013):1-11.
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