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The impacts of Radio Frequency Identification (RFID) technology on supply chain costs

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  • Ustundag, Alp
  • Tanyas, Mehmet

Abstract

Radio Frequency Identification (RFID) is regarded as a promising technology for the optimization of supply chain processes since it improves manufacturing and retail operations from forecasting demand to planning, managing inventory, and distribution. This study uses a simulation model to calculate the expected benefits of an integrated RFID system on a three-echelon supply chain obtained through performance increases in efficiency, accuracy, visibility, and security level. The study investigates how the product value, lead time, and demand uncertainty affect the performance of the integrated RFID supply chain in terms of cost factors at the echelon level.

Suggested Citation

  • Ustundag, Alp & Tanyas, Mehmet, 2009. "The impacts of Radio Frequency Identification (RFID) technology on supply chain costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 29-38, January.
    • Handle: RePEc:eee:transe:v:45:y:2009:i:1:p:29-38
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    Citations

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    Cited by:

    1. White, Chelsea C. & Cheong, Taesu, 2012. "In-transit perishable product inspection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 310-330.
    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.
    3. 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.
    4. Rekha Guchhait & Sarla Pareek & Biswajit Sarkar, 2019. "How Does a Radio Frequency Identification Optimize the Profit in an Unreliable Supply Chain Management?," Mathematics, MDPI, vol. 7(6), pages 1-19, May.
    5. Taehyun Ko & Jaeram Lee & Doojin Ryu, 2018. "Blockchain Technology and Manufacturing Industry: Real-Time Transparency and Cost Savings," Sustainability, MDPI, vol. 10(11), pages 1-20, November.
    6. Vairetti, Carla & González-Ramírez, Rosa G. & Maldonado, Sebastián & Álvarez, Claudio & Voβ, Stefan, 2019. "Facilitating conditions for successful adoption of inter-organizational information systems in seaports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 333-350.
    7. 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.
    8. Olumide Emmanuel Oluyisola & Fabio Sgarbossa & Jan Ola Strandhagen, 2020. "Smart Production Planning and Control: Concept, Use-Cases and Sustainability Implications," Sustainability, MDPI, vol. 12(9), pages 1-29, May.
    9. Govindan, Kannan & Kannan, Devika & Jørgensen, Thomas Ballegård & Nielsen, Tim Straarup, 2022. "Supply Chain 4.0 performance measurement: A systematic literature review, framework development, and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    10. Pei, Jinxiang & Klabjan, Diego, 2010. "Inventory control in serial systems under radio frequency identification," International Journal of Production Economics, Elsevier, vol. 123(1), pages 118-136, January.
    11. Agrawal, Paras M. & Sharda, Ramesh, 2012. "Impact of frequency of alignment of physical and information system inventories on out of stocks: A simulation study," International Journal of Production Economics, Elsevier, vol. 136(1), pages 45-55.
    12. Hu, Hui & Xu, Jiajun & Liu, Mengqi & Lim, Ming K., 2023. "Vaccine supply chain management: An intelligent system utilizing blockchain, IoT and machine learning," Journal of Business Research, Elsevier, vol. 156(C).
    13. Pantano, Eleonora & Naccarato, Giuseppe, 2010. "Entertainment in retailing: The influences of advanced technologies," Journal of Retailing and Consumer Services, Elsevier, vol. 17(3), pages 200-204.
    14. 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.
    15. 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.
    16. 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.
    17. Deepak Prashar & Nishant Jha & Sudan Jha & Yongju Lee & Gyanendra Prasad Joshi, 2020. "Blockchain-Based Traceability and Visibility for Agricultural Products: A Decentralized Way of Ensuring Food Safety in India," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    18. Bo Yan & Xiaoxu Chen & Qin Yuan & Xiaotai Zhou, 2020. "Sustainability in fresh agricultural product supply chain based on radio frequency identification under an emergency," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(4), pages 1343-1361, December.
    19. Cheung, Kam-Fung & Bell, Michael G.H. & Bhattacharjya, Jyotirmoyee, 2021. "Cybersecurity in logistics and supply chain management: An overview and future research directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    20. Simonetto, Marco & Sgarbossa, Fabio & Battini, Daria & Govindan, Kannan, 2022. "Closed loop supply chains 4.0: From risks to benefits through advanced technologies. A literature review and research agenda," International Journal of Production Economics, Elsevier, vol. 253(C).
    21. Biswal, Arun Kumar & Jenamani, Mamata & Kumar, Sri Krishna, 2018. "Warehouse efficiency improvement using RFID in a humanitarian supply chain: Implications for Indian food security system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 205-224.
    22. Shankar, Ravi & Gupta, Rachita & Pathak, Devendra Kumar, 2018. "Modeling critical success factors of traceability for food logistics system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 205-222.
    23. 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.
    24. Kee-hung Lai & Yu Pang & Christina W. Y. Wong & Y. H. Venus Lun & Y. N. Eppie Ng, 2019. "Are trade and transport logistics activities mutually reinforcing? Some empirical evidences from ASEAN countries," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-17, December.

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