Abstract.Asthe market competition became more fiercely and the customers’ needs of diversifiedproductsincreased, small and medium enterprises (SME) were more and more aware of the importance ofgetting quick respond of the market. More and more enterprises feltthe logistics cost pressure during this business. How to lowerdownthe logistics cost especiallythe stock cost became crucial for these SMEenterprises.Furthermore, for enterprises whose producing type is many varietiessmall batches,how to use valid method to decline inventoryandwaste, is agreat hard nut to crack. This article targeted on inventory control ofclothing manufacturing enterprises for research, RFID technology was applied instock management, optimization method was adopted for inventory control basedon RFID, optimization control model was built, and the routefor declined inventory costand waste was analyzed. Finally, theapplication method was verified according emulation.

Keywords:RFID,Inventory Control, Optimization, Many-Varieties-Small-Batches

1. Introduction

Radio Frequency Identification (RFID)technique is a kind of non-touch automatically identify technique. The basictheory is making use of the radio frequency signal and space coupling todeliver, to realize the automatically identification of products^[1].Accompanying withthe increasing readingand writingprecision of RFID label, as well as the decreasing manufacturingcost, RFID waswidely used. Becauseof itscharacteristics of non-touch and highspeed automatically identification, we can establish logic connection from the RFIDlabel information to the DBMS (Database Management Systems, DBMS).Through that RFID’sadvantage can be used in various situations.

In the logistics and supply chainmanagement systems, RFID is extensively been applied in collecting data, particularlythe situation that needs high accuracy of data. The RFIDcan carry out fast logistics information obtaining, which could providemanagement and controlling decision. In 1997 the supply chain managementcommittee put forward a supply chain operation reference model called SCOR (Supply Chain Operations Reference, SCOR). This modelprovided a general supply chain structure, standard of technical termdefinition, general standard for evaluation and the best implementationanalytical model. TheSCOR model has become a standard for developing, supporting, andtesting a supply chain management system. Such as figure1 showed below.