Using Hurst Exponent to Investigate the Impact of RFID Implementation on Supply Chain Dynamics

Chien-Yuan Su, Jinsheng Roan


In recent years Radio Frequency Identification (RFID) is the epochal information technology applications for the
supply chain processes optimization. More and more researchers of e-Supply Chain Management (e-SCM) have
devoted to measure accurately the RFID implementation benefit. This research investigates the variability and
dynamics of multi-level supply chain and proposes insights into how to manage relevant supply chain factors to
exterminate or reduce system instability. In addition, we adopted the beer distribution model to construct the
simulation model to describe the multi-level supply chain and utilized the Hurst Exponent to analyze the
dynamics behavior of inventory under different factors that include lead time, demand pattern, information
sharing, and RFID utilization effectualness. The results revealed that lead time and RFID utilization
effectualness influence crucially the inventory dynamics under the stock and supply line discrepancies of
determined parameters. These indicated that a significant influence of the RFID utilization effectualness on
inventory stability, as well as in providing an effectual RFID utilization investment and implementation mode
and strategy to managers.

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