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An investment evaluation of supply chain RFID technologies: A normative modeling approach

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  • Lee, In
  • Lee, Byoung-Chan

Abstract

As Radio Frequency Identification (RFID) technology advances rapidly and major retailers start to push their suppliers to adopt the technology, RFID cost-benefit analysis has become a subject of great focus. RFID complements or replaces barcode systems and traditional manual tracking systems to identify, retrieve, track, and store merchandise automatically. The adoption of this technology is gaining momentum rapidly as technological, societal, and competitive pressures push firms to transform and innovate themselves. Because of the potential benefits gained and high investment costs incurred by RFID, firms need to carefully assess every RFID opportunity and challenge to ensure that their resources are spent judiciously. This paper presents the Supply Chain RFID Investment Evaluation Model, and provides a basis for enhancing our understanding of RFID value creation, measurement, and ways to maximize the value of RFID technology. A future research direction is also discussed.

Suggested Citation

  • Lee, In & Lee, Byoung-Chan, 2010. "An investment evaluation of supply chain RFID technologies: A normative modeling approach," International Journal of Production Economics, Elsevier, vol. 125(2), pages 313-323, June.
    • Handle: RePEc:eee:proeco:v:125:y:2010:i:2:p:313-323
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    2. Svetlana Nikolicic & Milorad Kilibarda & Marinko Maslaric & Dejan Mircetic & Sanja Bojic, 2021. "Reducing Food Waste in the Retail Supply Chains by Improving Efficiency of Logistics Operations," Sustainability, MDPI, vol. 13(12), pages 1-24, June.
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    6. Yazici, Hulya Julie, 2014. "An exploratory analysis of hospital perspectives on real time information requirements and perceived benefits of RFID technology for future adoption," International Journal of Information Management, Elsevier, vol. 34(5), pages 603-621.
    7. Kenan Aydin & Seda Yildirim, 2012. "Case study about RFID System in Library Services," International Journal of Synergy and Research, ToKnowPress, vol. 1(2), pages 91-102.
    8. De Marco, Alberto & Cagliano, Anna C. & Nervo, Mauro L. & Rafele, Carlo, 2012. "Using System Dynamics to assess the impact of RFID technology on retail operations," International Journal of Production Economics, Elsevier, vol. 135(1), pages 333-344.
    9. Yanqi Zhang & Xiaofei Kou & Haibin Liu & Shiqing Zhang & Liangliang Qie, 2022. "IoT-Enabled Sustainable and Cost-Efficient Returnable Transport Management Strategies in Multimodal Transport Systems," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    10. Wong, W.K. & Leung, S.Y.S. & Guo, Z.X. & Zeng, X.H. & Mok, P.Y., 2012. "Intelligent product cross-selling system with radio frequency identification technology for retailing," International Journal of Production Economics, Elsevier, vol. 135(1), pages 308-319.
    11. Shin, Seungjae & Eksioglu, Burak, 2015. "An empirical study of RFID productivity in the U.S. retail supply chain," International Journal of Production Economics, Elsevier, vol. 163(C), pages 89-96.
    12. Tao, Feng & Wang, Liang & Fan, Tijun & Yu, Hao, 2022. "RFID adoption strategy in a retailer-dominant supply chain with competing suppliers," European Journal of Operational Research, Elsevier, vol. 302(1), pages 117-129.
    13. Feng Tao & Tijun Fan & Kin Keung Lai & Lin Li, 2017. "Impact of RFID technology on inventory control policy," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(2), pages 207-220, February.
    14. Cui, Ligang & Deng, Jie & Liu, Rui & Xu, Dongyang & Zhang, Yajun & Xu, Maozeng, 2020. "A stochastic multi-item replenishment and delivery problem with lead-time reduction initiatives and the solving methodologies," Applied Mathematics and Computation, Elsevier, vol. 374(C).
    15. Lui, Ariel K.H. & Lo, Chris K.Y. & Ngai, Eric W.T., 2019. "Does mandated RFID affect firm risk? The moderating role of top management team heterogeneity," International Journal of Production Economics, Elsevier, vol. 210(C), pages 84-96.
    16. Lei, Quansheng & Chen, Jian & Wei, Xingyu & Lu, Shan, 2015. "Supply chain coordination under asymmetric production cost information and inventory inaccuracy," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 204-218.
    17. Aiello, Giuseppe & Enea, Mario & Muriana, Cinzia, 2015. "The expected value of the traceability information," European Journal of Operational Research, Elsevier, vol. 244(1), pages 176-186.
    18. Dimakopoulou, Andriana G. & Pramatari, Katerina C. & Tsekrekos, Andrianos E., 2014. "Applying real options to IT investment evaluation: The case of radio frequency identification (RFID) technology in the supply chain," International Journal of Production Economics, Elsevier, vol. 156(C), pages 191-207.

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