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Chinese Journal of Management Science ›› 2018, Vol. 26 ›› Issue (5): 86-97.doi: 10.16381/j.cnki.issn1003-207x.2018.05.009

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A Study on the RFID Investment Decision Model for the Revised Joint Replenishment and Delivery Problem

CUI Li-gang1,2, DENG Jie3, WANG Lin2, ZHANG Jin-Long2, XU Mao-zeng1   

  1. 1. School of Economics and Management, Chongqing Jiaotong University, Chongqing 400074, China;
    2. School of Management, Huazhong University of Science and Technology, Wuhan 430074, China;
    3. Intellectual Property Institution of Chongqing, Chongqing University of Technology, Chongqing 400054, China
  • Received:2016-10-25 Revised:2017-05-13 Online:2018-05-20 Published:2018-07-30

Abstract: The increasing in the customers' requirement diversifications, followed by the quick response changing of logistics, brings great challenges to replenishment-delivery operations under the multi-item circumstance. Radio frequency identification (RFID) helps realize the information sharing in the whole supply chain by tracing the status of products in real-time. However, in light of the high cost of RFID, it is necessary to balance the risks and the returns before systematical investment in the replenishment-delivery processes. Accordingly, under the assumption that RFID implementation helps improve the ordering efficiency and JIT (Just in Time) efficiency, a revised joint replenishment and delivery (JRD) based RFID investment decision model is proposed. Through coordinating the multi-item joint replenishment and multi-client joint delivery, the revised JRD with RFID deployed tries to achieve the minimum total cost, thereby the optimal basic cycle time and the replenishment frequencies of multi-item are obtained. Thereafter, the differential evolutionary (DE) algorithm is applied to solve the proposed JRD model by redesigning its evolutionary process considering the model structure. Numerical experiments reveal the following conclusions:(a) DE has been testified to be an efficient and effective algorithm in searching the optimal results. (b) RFID helps decrease the total cost of the JRD model, but the equilibrium between the investment scale and the returns should not be overlooked. (c) RFID investment in a single process of JRD is worse than that in the whole system, and RFID investment in a high cost sector promises more gaining. This research contributes the literature within the realm of investigating the RFID investment effects to the replenishment-delivery system, and the results can provide certain references for the practitioners to initiate RFID projects.

Key words: joint replenishment, delivery, RFID, differential evolution, investment decision

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