Optimization on RFID-enabled CONWIP control strategy for multi-echelon inventory of supply chain

It is very significant to study on the control strategies to improve the performance of multi-echelon inventory systems. As the ability of Radio Frequency Identification (RFID) that can count and locate products precisely, it provides a technical way to realize RFID-Enable electronic Card system, based on the system, the CONWIP strategy is extended to the multi-echelon inventory of supply chain. In this paper, a four-echelon inventory of supply chain is exemplified and the strategy is optimized by the simulation-based harmony search optimization method. The parameters of the strategy after optimization are made as the input to the simulation model. To verify the performance of the CONWIP strategy, it is compared with RFID-Enable (s, S) and Push strategies by simulation, the simulation results demonstrate that the strategy can reduce the total cost and enhance the service level effectively.

[1]  Helmut Schneider,et al.  Effect of service-levels on order-points or order-levels in inventory models , 1981 .

[2]  Stéphane Dauzère-Pérès,et al.  A literature review on the impact of RFID technologies on supply chain management , 2010 .

[3]  Hyo-Seong Lee,et al.  Performance evaluation of a multi-product CONWIP assembly system with correlated external demands , 2013 .

[4]  Xiuli Wang,et al.  A simulation study of CONWIP assembly with multi-loop in mass production, multi-products and low volume and OKP environments , 2015 .

[5]  May Tajima.  Strategic value of RFID in supply chain management , 2007 .

[6]  Adolfo Crespo Márquez,et al.  Exploring the utilization of a CONWIP system for supply chain management. A comparison with fully integrated supply chains , 2003 .

[7]  Ananth Krishnamurthy,et al.  Performance analysis of CONWIP systems with batch size constraints , 2013, Ann. Oper. Res..

[8]  Gudrun P. Kiesmüller,et al.  Evaluation of divergent N-echelon (s,nQ)-policies under compound renewal demand , 2004, OR Spectr..

[9]  Zong Woo Geem,et al.  A New Heuristic Optimization Algorithm: Harmony Search , 2001, Simul..

[10]  Li Guo-ji.  Design and simulation of radio frequency identification-enabled hybrid Push/Pull strategy for multi-echelon inventory of supply chain , 2014 .

[11]  Jumpol Vorasayan,et al.  Allocating work in process in a multiple-product CONWIP system with lost sales , 2005 .

[12]  Dursun Delen,et al.  An RFID network design methodology for asset tracking in healthcare , 2010, Decis. Support Syst..

[13]  Michael A. Zazanis,et al.  Push and Pull Production Systems: Issues and Comparisons , 1992, Oper. Res..

[14]  Basar Oztaysi,et al.  Radio frequency identification (RFID) in hospitality , 2009 .

[15]  Kamran Moinzadeh,et al.  A Multi-Echelon Inventory System with Information Exchange , 2002, Manag. Sci..

[16]  Wang Ding-wei.  Simulation-based optimization on three-echelon network stochastic inventory control policies , 2009 .

[17]  Selwyn Piramuthu,et al.  Knowledge-based RFID enabled Web Service architecture for supply chain management , 2010, Expert Syst. Appl..

[18]  Jiayi Wang,et al.  A comparison of HK-CONWIP and BK-CONWIP control strategies in a multi-product manufacturing system , 2015 .

[19]  Katerina Pramatari,et al.  Supporting real-time supply chain decisions based on RFID data streams , 2011, J. Syst. Softw..

[20]  A. G. Lagodimos,et al.  Service performance of two-echelon supply chains under linear rationing , 2008 .

[21]  W. B. Lee,et al.  Design of a RFID case-based resource management system for warehouse operations , 2005, Expert Syst. Appl..

[22]  Daisuke Hirotani,et al.  Comparing CONWIP, synchronized CONWIP, and Kanban in complex supply chains , 2005 .