Analysis of RFID technology on controlling shrinkage and anti-counterfeiting in luxury industry

Motivated by radio-frequency identification (RFID), it has been heralded as a major breakthrough to enhance the efficiency of a supply chain. This paper aims to explore the prospects of RFID investment value in luxury market, by mainly focusing on the optimal investment strategies, in order to optim...

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Bibliographic Details
Published in2012 IEEE International Conference on Industrial Engineering and Engineering Management pp. 1137 - 1141
Main Authors Wei Xu, Zhaotong Lian, Xifan Yao
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.12.2012
Subjects
anti-counterfeiting
Contracts
Inventory inaccuracy
Investment
luxury
Numerical analysis
Radio frequency
Radiofrequency identification
RFID
supply chain contract
Supply chains
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Summary:Motivated by radio-frequency identification (RFID), it has been heralded as a major breakthrough to enhance the efficiency of a supply chain. This paper aims to explore the prospects of RFID investment value in luxury market, by mainly focusing on the optimal investment strategies, in order to optimize ordering quantity and maximize the profits. We compare two scenarios in a three-level supply chain involving a manufacturer, a distributor and a retailer. Each scenario is developed for two situations under conditions with or without the implement of RFID. According to the luxury consumption psychology of consumers and the luxury market characteristics, we mainly consider the case of inventory shrinkage and try to effectively control the issues of mis-categorization, theft and anti-counterfeiting. Finally, we present numerical analyses. Therefore, the research of RFID application in this paper has important theoretical value and great practical significance.
ISSN:2157-3611
2157-362X
DOI:10.1109/IEEM.2012.6837920