Applying RFID to reduce bullwhip effect in a FMCG supply chain

Abstract

This paper provides a quantitative analysis of the reduction in the bullwhip effect, and the potential benefits thanks to real-time visibility of production flows provided by the Radio Frequency Identification (RFID) technology and other technologies. This paper is based on a Fast Moving Consumer Goods (FMCG) supply chain; the supply chain is composed of there echelons, namely manufacturers, distributors and retailers of FMCG, the RFID-based intra-SC system is implemented for the enterprise's warehouse in JiangSu province, china. The result show that RFID application can dramatically improve the efficiency of FMCG supply chain, And real-time visibility of supply chain can markedly reduce the bullwhip effect, and substantially affecting the economical profitability of the whole FMCG supply chain. Keywords radio frequency identification (RFID), Bullwhip effect, FMCG supply chain, Quantitative analysis I.978-1-4244-8694-6/11/$26.00 ©2011 IEEE

Measuring and eliminating the bullwhip in closed loop supply chains using control theory and Internet of Things

“…Dominguez et al (2019) state that investing in technologies to process product returns helps managers to absorb the uncertainty in terms of quality and reduce the bullwhip effect. Recent technological innovations, such as radio-frequency identification (RFID), distributed systems and cloud computing have been investigated as to whether they can reduce information distortion through data acquisition, data analytics, and real-time communication systems (Lindner et al 2010;Zhigang 2012;Gowda and Subramanya 2017).…”