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The simulated impact of RFID-enabled supply chain on pull-based inventory replenishment in TFT-LCD industry

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  • Wang, Shu-Jen
  • Liu, Shih-Fei
  • Wang, Wei-Ling

Abstract

This research focuses on the analysis of simulated impact of the radio frequency identification (RFID) system on the inventory replenishment of the thin film transistor liquid crystal display (TFT-LCD) supply chain in Taiwan. A global operations and logistics case of a well-known LCD monitor manufacturer in Taiwan has been studied. The pull-based multi-agents supply chain was accordingly modeled and simulated with AnyLogic. An automatic inventory replenishment function adopting the (s, S) policy is enabled with RFID or not. The result of the experiment shows that the RFID-enabled pull-based supply chain can be effectively achieved with a 6.19% decrease in the total inventory cost, and a 7.60% increase in the inventory turnover rate.

Suggested Citation

  • Wang, Shu-Jen & Liu, Shih-Fei & Wang, Wei-Ling, 2008. "The simulated impact of RFID-enabled supply chain on pull-based inventory replenishment in TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 112(2), pages 570-586, April.
    • Handle: RePEc:eee:proeco:v:112:y:2008:i:2:p:570-586
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    1. Ahmed Musa & Al-Amin Abba Dabo, 2016. "A Review of RFID in Supply Chain Management: 2000–2015," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 17(2), pages 189-228, June.
    2. Saikouk, Tarik & Badraoui, Ismail & Spalanzani, Alain, 2014. "The Forest Supply Chain Management: An Entropic Perspective," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Next Generation Supply Chains: Trends and Opportunities. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 18, volume 18, pages 487-513, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Zhong, Ray Y. & Huang, George Q. & Lan, Shulin & Dai, Q.Y. & Chen, Xu & Zhang, T., 2015. "A big data approach for logistics trajectory discovery from RFID-enabled production data," International Journal of Production Economics, Elsevier, vol. 165(C), pages 260-272.
    4. Becker, Jörg & Vilkov, Lev & Weiß, Burkhard & Winkelmann, Axel, 2010. "A model based approach for calculating the process driven business value of RFID investments," International Journal of Production Economics, Elsevier, vol. 127(2), pages 358-371, October.
    5. T. Saikouk & I. Zouaghi & A. Spalanzani, 2011. "Mitigating Supply Chain System Entropy by the Implementation of RFID," Post-Print halshs-00665653, HAL.
    6. Yang, Huixiao & Chen, Wenbo, 2020. "Game modes and investment cost locations in radio-frequency identification (RFID) adoption," European Journal of Operational Research, Elsevier, vol. 286(3), pages 883-896.
    7. Sarac, Aysegul & Absi, Nabil & Dauzère-Pérès, Stéphane, 2010. "A literature review on the impact of RFID technologies on supply chain management," International Journal of Production Economics, Elsevier, vol. 128(1), pages 77-95, November.
    8. Sari, Kazim, 2010. "Exploring the impacts of radio frequency identification (RFID) technology on supply chain performance," European Journal of Operational Research, Elsevier, vol. 207(1), pages 174-183, November.
    9. Toh, K.T.K. & Nagel, P. & Oakden, R., 2009. "A business and ICT architecture for a logistics city," International Journal of Production Economics, Elsevier, vol. 122(1), pages 216-228, November.
    10. Ferrer, Geraldo & Heath, Susan K. & Dew, Nicholas, 2011. "An RFID application in large job shop remanufacturing operations," International Journal of Production Economics, Elsevier, vol. 133(2), pages 612-621, October.
    11. Hsiao, Yu-Cheng, 2008. "Integrated logistic and inventory model for a two-stage supply chain controlled by the reorder and shipping points with sharing information," International Journal of Production Economics, Elsevier, vol. 115(1), pages 229-235, September.
    12. Reaidy, Paul J. & Gunasekaran, Angappa & Spalanzani, Alain, 2015. "Bottom-up approach based on Internet of Things for order fulfillment in a collaborative warehousing environment," International Journal of Production Economics, Elsevier, vol. 159(C), pages 29-40.
    13. Abderahman Rejeb & John G. Keogh & Horst Treiblmaier, 2019. "Leveraging the Internet of Things and Blockchain Technology in Supply Chain Management," Future Internet, MDPI, vol. 11(7), pages 1-22, July.
    14. Véronneau, Simon & Roy, Jacques, 2009. "RFID benefits, costs, and possibilities: The economical analysis of RFID deployment in a cruise corporation global service supply chain," International Journal of Production Economics, Elsevier, vol. 122(2), pages 692-702, December.
    15. Bottani, Eleonora & Montanari, Roberto & Volpi, Andrea, 2010. "The impact of RFID and EPC network on the bullwhip effect in the Italian FMCG supply chain," International Journal of Production Economics, Elsevier, vol. 124(2), pages 426-432, April.

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