International Journal of Radio Frequency Identification Technology and Applications
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International Journal of Radio Frequency Identification Technology and Applications (1 paper in press)
Impact of RFID technology on the performance of multi-echelon supply chains by Leticia Cavazos, J. David Porter, Hector Vergara Abstract: Radio frequency identification (RFID) has long been regarded as an automated data collection technology that promises solutions to inefficiencies found in supply chains, such as excessive inventory stock, inventory obsolescence, stockouts, and theft. The main objective of this research was to identify, analyse, and discuss supply chain performance factors that affect the performance of multi-echelon supply chains when RFID technology is implemented. To accomplish this objective, the performance of two supply chain designs using different levels of accuracy and implementation of RFID technology was evaluated via discrete event simulation. The results obtained suggest that several factors affect the performance of multi-echelon supply chains when RFID technology is implemented with respect to the response variables total number of stockouts and fill rate. It was also observed that even with the implementation of RFID technology, the fill rates observed at different echelons in both supply chain designs were not very high. Understanding the potential impact of these critical supply chain performance factors would allow organisations to better comprehend under which circumstances RFID-based inventory management systems can better support real-time inventory tracking and localisation. Keywords: discrete event simulation; multi-echelon; RFID; single-echelon; supply chain.