Applying RFID in warehouse operations of an Italian courier express company
AbstractThis paper deals with the re-engineering and design optimization of a warehouse for package storage operations occurring daily at a leading courier express company in Italy. The objective of our study is to quantify the return on investment and error reduction that can be achieved by the application of advanced tracking technologies in the package management process. This study considers the use of RFID tags to facilitate identifying items in a package delivery service facility. In a first phase, we analyze the current process and show the speed-up of the operators with barcode readers compared to the operations handbook. In a second phase, we introduce radio frequency identification (RFID) technologies in the warehouse and perform practical experiments in order to detect configurations with error-free item scanning. An optimal configuration of the warehouse and of the RFID-based package management process is obtained by a non-linear optimization model that minimizes the overall technology and management costs. The probability of item errors is modeled by a maximum likelihood estimation procedure that determines the scanning area of each antenna with minimal scanning error. The new process with RFID technology reduces the costs of daily operations in the studied warehouse up to 25% and the workload of the operators up to 4 h. Copyright Springer Science+Business Media, LLC. 2011
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal NETNOMICS: Economic Research and Electronic Networking.
Volume (Year): 12 (2011)
Issue (Month): 3 (October)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102537
RFID; Business process reengineering; Logistics optimization; Location system; Decision support methods; Maximum likelihood;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ngai, E.W.T. & Moon, Karen K.L. & Riggins, Frederick J. & Yi, Candace Y., 2008. "RFID research: An academic literature review (1995-2005) and future research directions," International Journal of Production Economics, Elsevier, vol. 112(2), pages 510-520, April.
- Berg, J. P. van den & Zijm, W. H. M., 1999. "Models for warehouse management: Classification and examples," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 519-528, March.
- Olli-Pekka Pohjola & Kalevi Kilkki, 2007. "Value-based methodology to analyze communication services," Netnomics, Springer, vol. 8(1), pages 135-151, October.
- de Kok, A.G. & van Donselaar, K.H. & van Woensel, T., 2008. "A break-even analysis of RFID technology for inventory sensitive to shrinkage," International Journal of Production Economics, Elsevier, vol. 112(2), pages 521-531, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.