One of the key challenges for implementing RFID systems in supply chain management is the difficulty in economic justification. Such difficulty is further amplified by its public participation nature as multiple self-interest beneficiaries may receive diverse paybacks, and their incentives to join the system are difficult to align. This paper aims to address these problems by a collaborative design from two aspects. First, we propose to introduce a centralized planning mechanism in the chain to facilitate the participation, so that the cost of the overall system can be minimized. Second, we propose to analyze the multi-facet economic return from multi-purpose applications to achieve the full potential of RFID systems. To illustrate our approach, its application for inventory inaccuracy and product recall in RFID system is presented.
