Research on supply chain optimal control based on RFID integrated system

The optimal control approaches of supply chain are investigated from inventory control based on RFID integrated system. Firstly, a RFID-based supply chain management framework that is composed of three layers (capture layer, movement layer and application layer) is presented, and the function of each layer is described also. Secondly, although the implement of RFID system will incur additional costs, it can improve visibility on the whole chain. So the effective of supply chain system will be enhanced largely. Finally, the fixed costs and the variable costs of RFID in supply chain inventory management are analyzed by modeling in application layer, and the control methods of inventory costs are discussed to achieve the optimal operation of the supply chain by the support of RFID system.