Title: An analysis of imperfect RFID visibility in a multi-echelon supply chain

Authors: Nebil Buyurgan, Manuel D. Rossetti, Ronald T. Walker

Addresses: Department of Industrial Engineering, University of Arkansas, 4207 Bell Engineering Center, Fayetteville, AR 72701, USA. ' Department of Industrial Engineering, University of Arkansas, 4207 Bell Engineering Center, Fayetteville, AR 72701, USA. ' Resource Optimization and Innovation (ROI), Sisters of Mercy Health System, 14528 S. Outer Forty, Suite 200, St. Louis, MO 63017, USA

Abstract: This study investigates how imperfect inventory information provided by Radio Frequency Identification (RFID) technology can be used in inventory management. A simulation-based approach is utilised to understand the potential uses and impacts of imperfect RFID data in multi-echelon retail supply chains. The results reveal that when used as the primary decision-making tool, RFID could be a valuable technology even without perfect visibility. However, unforeseen trends and system behaviours are observed on the level of inventory record inaccuracy. When RFID is used to monitor the inventory as a supporting technology, the information provided can be used to trigger inventory correction activities.

Keywords: inventory management; imperfect RFID data; radio frequency identification; SCM; supply chain management; multi-echelon supply chains; imperfect information; inventory information; simulation; inventory correction.

DOI: 10.1504/IJLSM.2010.035631

International Journal of Logistics Systems and Management, 2010 Vol.7 No.4, pp.431 - 455

Published online: 01 Oct 2010 *

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