Simulation-based optimization on RFID-enabled hybrid Push/Pull control strategy for multi-echelon inventory of supply chain

The research on control methods of multi-echelon inventory systems is very significant to reduce inventory cost, to improve service level and to enhance the key competitive ability. Internet to things and Radio Frequency Identification (RFID) provides an effective way to the innovation of inventory control strategies. In this paper, the Push/Pull control strategy based on RFID is applied to multi-echelon inventory of supply chain, and three-echelon inventory of supply chain is exemplified and eight kinds of RFID-enabled hybrid Push/Pull control strategies are designed. These strategies are optimized by the simulation-based particle-swarm optimization method. The results demonstrate the feasibility and the effectiveness of the method. The simulation results after optimization show that the hybrid Push/Pull control strategy that manufactures are controlled by the Push strategy, the distributions and retailers are controlled by the Pull strategy performs best among the eight kinds of strategies.