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Combined contract for coordinating an RFID enabled supply chain

Author

Listed:
  • G. Partha Sarathi
  • S.P. Sarmah
  • M. Jenamani

Abstract

In this paper, a model is developed to coordinate a radio frequency identification (RFID) enabled supply chain considering revenue sharing (RS) and quantity discounts (QDs) contracts. The paper demonstrates that the proposed combined contract model coupled with tag cost sharing mechanism achieves perfect coordination. Furthermore, it establishes the condition under which RS and QD contracts with tag cost sharing mechanism can be implemented in RFID enabled supply chain. Moreover, a numerical study is conducted to demonstrate the model. Finally, sensitivity analysis is performed to delve into the impact of various parameters such as responsiveness, tag cost, revenue sharing fraction and demand variability on supply chain coordination.

Suggested Citation

  • G. Partha Sarathi & S.P. Sarmah & M. Jenamani, 2013. "Combined contract for coordinating an RFID enabled supply chain," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 15(1), pages 95-122.
    • Handle: RePEc:ids:ijsoma:v:15:y:2013:i:1:p:95-122
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