Vendor Managed Inventory system by using RFID

[[abstract]]In the traditional supply chain system, the mutual confidence between the members is unable fully to share information. In order to orientate the terminal product short life cycle and the fast customer’s response, down to cause the extrusion and the demand expands of the supply merchant stock to make the glut of materials and damage of short supply. Because of the increasing overstocks, it decreases the competitiveness. The most importance and widely discusses is "Bullwhip Effect". RFID and Oracle are combined with associated database to plan a VMI System to write this stylization characteristic label through RFID. When the warehouse regional inventorying work runs to respond immediately the amount of reserve through the database, it can provide the instant reserve to the supplier by the Internet. When the goods in stock quantity are lower than the security storage quantity, it begins to restock immediately. By holding the sale (demand) and the reserve as the solution of market demand forecast and the restocks, it can balance the cost of inventory and serve the customer’s demand