The Impact of RFID on the Supply Chain Based on EOQ Models

The rapid development of RFID technology has attracted wide attention from all walks of life and has begun to be used in the supply chain. The cost and benefits of applying RFID technology have become the focus of attention. This article is aimed at a secondary supply chain consisting of a manufacturer and a retailer. The supply chain model is based on the economic batch model, taking into account the order (production) cost and its efficiency, inventory cost and JIT efficiency, operating cost and effectiveness. Under this circumstance, the optimal investment level of investment in RFID technology will be determined. And the inventory inaccuracy factors that are widely present in the supply chain problem are added to the model to study how RFID will affect the supply chain cost while optimizing inventory management. This article discusses the performance of RFID technology in the centralized supply chain and decentralized supply chain. It provides a reference for future supply chain investment.