RFID Application Research Under Two Inventory Management Mode Of JIT Procurement Strategies

The current market environment is customer oriented, changing quickly and competitive, the enterprise only can get a different view for improving the competitiveness of management mode to have the ability of fast response to market. Effective inventory control can reduce the operation cost and improve its competitiveness.This paper considers RFID application research on secondary supply chain of JIT procurement strategy to reduce the stock between classic inventory management and VMI inventory management. From the point of misplaced inventory, this paper thinks RFID technology can completely solve the problem of misplaced inventory, analysis RFID technology incentive of the two inventory modes.Set up each cost function for retailer and manufacturer before and after adopting RFID under JIT purchasing strategy of classic inventory and VMI management, thenⅠanalysed the optimal delivery times, retailer's, manufacturer's, and supply chain cost, compared the trend, differences and the incentive of adopting RFID,these works can give similar enterprises a good reference of whether adopting RFID.Compared the JIT purchasing strategy classic inventory management and VMI inventory management, I analysed which inventory management is more urgent to adopt RFID technology, the results show that the JIT purchasing strategy under the enterprise of VMI inventory management is more urgent need to adopt RFID technology, this kind of enterprise can consider adopting RFID technology to solve problems of the inventory, so as to improve its own benefit.Finally, I consider customer satisfaction by out of stock, compared the probability of out of stock in the four cases under the JIT procurement strategy of classic inventory management and VMI inventory management, the results tell us the advantages of RFID adopted in JIT purchasing strategy classic inventory management and VMI.Through the study, I find JIT purchasing strategy VMI mode has more incentive than classical inventory management model enterprise to adopt the RFID technology, so to reduce the cost, the similar enterprise has a good reference from the study.