Abstract
We investigate whether it is possible for the manufacturer as well as the retailer to derive economic benefits from item-level RFID. We consider two supply chain contracts. In the first instance the manufacturer sets the wholesale price for his product and in response the retailer sets the retail price and allocates the shelf-space. We find that in this setting item-level RFID is adopted in a decentralized supply chain at the same levels of RFID costs as in an integrated supply chain with a single decision maker. The second case that we consider involves a powerful retailer setting product shelf-space prices. In this setting the manufacturer essentially rents shelf-space from the retailer. We find that in this setting, the retailer may force the adoption of RFID even if it does not maximize the chain's total profit.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
