Simulation for implementing RFID-EPC in reverse supply chain based on consumer market

RFID-EPC can help to reduce the uncertainty of the quantity of collected used-products in reverse supply chain by using real-time monitoring. At the same time, the monitoring cost will affect the total profit of the reverse supply chain. So, when to implement RFID-EPC is a crucial problem. In this paper, we will simulate the implementing of RFID-EPC in reverse supply chain based on the consumer market: demand exceeds supply, supply exceeds demand, and demand equals supply approximately. Demand means the demand of remanufactured products and supply means the supply of collected used-products. The simulation results show that the implementing of RFID-EPC will increase the total profit of the reverse supply chain when demand exceeds supply and demand equals supply approximately. RFID-EPC can be implemented in reverse supply chain in these two situations. When supply exceeds demand, RFID-EPC shouldn´t be implemented.