Ordering Policy of Two-Stage Newsvendor Model for Fresh Retailer under RFID Investment

Abstract

Fresh products have a strong dependence on time and a large loss rate in the circulation process. Applying RFID technology to the supply chain of fresh products, through the real-time tracking technology, can not only reduce the products' time dependence but also realize the second order within the whole sales period. This paper takes a two-echelon fresh supply chain of a single fresh retailer as the research object, constructs a two-stage Newsvendor model with or without RFID technology, compares the difference in profits, and provides decision-making reference for fresh retailers whether to invest in RFID or not.