An RFID implementation study in inventory management

Authors: Zeng, Xin¹; Choy, K.L.²; Chow, Harry K.H.³

Source: International Journal of Value Chain Management, Volume 2, Number 4, 10 August 2008 , pp. 508-522(15)

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Abstract:

In this paper, we compare three RFID implementation strategies in the inventory management of a retail store. The three strategies are: pallet-level tagging, which deals with fixing RFID tags on pallets only; case-level tagging, which is for fixing RFID tags on cases only; the combined tagging strategy, which is for fixing RFID tags onto both pallets and cases. The objective of this paper to perform a trade-off study between the investment resulting from implementing RFID tagging using these different strategies and the visibility of the inventory level, based on a simulation model. Through using the simulation model, we develop a better understanding of the conditions under which RFID implementation strategies are cost effective.

Keywords: TECHNICAL JOURNALS; Materials and Manufacturing; MANAGEMENT JOURNALS; Operational Management, Marketing and Services

Document Type: Research article

DOI: http://dx.doi.org/10.1504/IJVCM.2008.019854

Affiliations: 1: Operational Research Group, Department of Management, London School of Economics, Houghton St, London, WC2A 2AE, UK. 2: Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong. 3: Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong

Publication date: 2008-08-10

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