A Technical and Business Perspective on Wireless Sensor Network for Manufacturing Execution System

Motivated by the complex production management with difficulties in error-prone assembly system and inaccurate supply chain inventory, this paper designs a novel manufacturing execution system (MES) architecture for intelligent monitoring based on wireless sensor network (WSN). The technical perspective includes analysis on the proposed manufacturing resource mutual inductance method under active sensing network, appreciation technology of multisource information, and dynamic optimization technology for manufacturing execution processes. From business perspective, this paper elaborates the impact of RFID investment on complex product by establishing a three-stage supply chain model that involves two suppliers carrying out Stackelberg games (manufacturer and retailer). The optimal cost threshold values of technology investment are examined for both the centralized and the decentralized scenarios utilizing quantitative modeling methods. By analyzing and comparing the optimal profit with or without investment on WSN, this paper establishes a supply chain coordination and boosting model. The results of this paper have contributed significantly for one to make decision on whether RFID should be adopted among its members in supply chain. The system performance and model extension are verified via numerical analyses.