JOURNAL OF NETWORKS (JNW)
ISSN : 1796-2056
Volume : 4    Issue : 2    Date : April 2009

Realization of SCM and CRM by Using RFID-captured Consumer Behavior Information
Tatsuya Inaba
Page(s): 92-99
Full Text:
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Abstract
Physical store retailers are facing a tougher situation than ever. In order to tackle this tough
situation, they need not only to reduce cost by effectively executing SCM but also to introduce
measures to increase profit like CRM. They are effective by themselves, but if they are combined the
retailers can enjoy more benefits from these practices. However, there is no good application that
realize both two business practices together. In this study, assuming that RFID system captures
consumer behavior information on the sales floor, we propose an application, in which discount
prices are offered to FSP member customers based on their loyalty level and the discount prices
are computed to achieve a target inventory turnover rate. To realize this application, we also propose
two algorithms that effectively control an inventory turnover rate at the same time reward FSP
customers based on their loyalty status. For evaluation, we develop a prototype system of the
application for a proof of concept and run a numerical study to show the validity of the proposed
algorithms.

Index Terms
RFID, SCM, CRM, FSP, Dynamic Pricing