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Item‐Level RFID in the Retail Supply Chain

Open access
Gaukler, Gary M., Seifert, Ralf W., Hausman, Warren H.·2007·Production and Operations Management

Abstract

Analyzing the proliferation of item‐level RFID, recent studies have identified the cost sharing of the technology as a gating issue. Various qualitative studies have predicted that conflict will arise, in particular in decentralized supply chains, from the fact that the benefits and the costs resulting from item‐level RFID are not symmetrically distributed among supply chain partners. To contribute to a better understanding of this situation, we consider a supply chain with one manufacturer and one retailer. Within the context of this retail supply chain, we present analytic models of the benefits of item‐level RFID to both supply chain partners. We examine both the case of a dominant manufacturer as well as the case of a dominant retailer, and we analyze the results of an introduction of item‐level RFID to such a supply chain depending on these market power characteristics. Under each scenario, we show how the cost of item‐level RFID should be allocated among supply chain partners such that supply chain profit is optimized.

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Metadata

Authors
Gaukler, G. M., Seifert, R. W., & Hausman, W. H.
Venue
Production and Operations Management
Published
2007-01
Volume
16
Issue
1
Pages
65-76
ISSN
  • 1059-1478 (ISSN-L)
  • 1937-5956
OpenAlex
W1998896412
Cited by
282
References
0
FWCI
56.00
Type
journal article
Language
en
Open access
bronze

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CoChat. (2026). Citation check: Item‐Level RFID in the Retail Supply Chain. https://app.cochat.ai/papers/10.1111/j.1937-5956.2007.tb00166.x
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Gaukler, G. M., Seifert, R. W., & Hausman, W. H. (2007). Item‐Level RFID in the Retail Supply Chain. Production and Operations Management. https://doi.org/10.1111/j.1937-5956.2007.tb00166.x

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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.