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Cost of ownership model for the RFID logistics system applicable to u-city

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  • Kim, Hong Sik
  • Sohn, So Young

Abstract

Currently, popular areas of radio frequency identification (RFID) application include the domain of ubiquitous city (u-city), which would require very high initial infrastructure cost. This study proposes a cost of ownership (COO) model for RFID logistics system applicable to u-city in order to support the decision making process of infrastructure construction. We apply the proposed model to a case of RFID logistics system by establishing potential scenarios. The expected profit from the construction of RFID logistics system is evaluated for each scenario. We also conduct a sensitivity analysis to consider the effect of various parameter settings. This study is expected to help companies in selecting the most beneficial and most profitable RFID logistics system.

Suggested Citation

  • Kim, Hong Sik & Sohn, So Young, 2009. "Cost of ownership model for the RFID logistics system applicable to u-city," European Journal of Operational Research, Elsevier, vol. 194(2), pages 406-417, April.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:2:p:406-417
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    Citations

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    Cited by:

    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. Büyüközkan, Gülçin & Ilıcak, Öykü, 2022. "Smart urban logistics: Literature review and future directions," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    3. Patra, Pradipta & Kumar, U. Dinesh & Nowicki, David R. & Randall, Wesley S., 2019. "Effective management of performance-based contracts for sustainment dominant systems," International Journal of Production Economics, Elsevier, vol. 208(C), pages 369-382.
    4. Lee, Jongkuk & Palekar, Udatta S. & Qualls, William, 2011. "Supply chain efficiency and security: Coordination for collaborative investment in technology," European Journal of Operational Research, Elsevier, vol. 210(3), pages 568-578, May.
    5. 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.
    6. 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.
    7. Piramuthu, Selwyn & Wochner, Sina & Grunow, Martin, 2014. "Should retail stores also RFID-tag ‘cheap’ items?," European Journal of Operational Research, Elsevier, vol. 233(1), pages 281-291.
    8. 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.
    9. Wanjie Hu & Jianjun Dong & Bon-gang Hwang & Rui Ren & Zhilong Chen, 2019. "A Scientometrics Review on City Logistics Literature: Research Trends, Advanced Theory and Practice," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    10. Saccani, Nicola & Perona, Marco & Bacchetti, Andrea, 2017. "The total cost of ownership of durable consumer goods: A conceptual model and an empirical application," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 1-13.
    11. Lui, Ariel K.H. & Lo, Chris K.Y. & Ngai, Eric W.T. & Yeung, Andy C.L., 2023. "A tough pill to swallow? The lessons learned from mandatory RFID adoption," International Journal of Production Economics, Elsevier, vol. 258(C).

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