IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v128y2010i1p77-95.html
   My bibliography  Save this article

A literature review on the impact of RFID technologies on supply chain management

Author

Listed:
  • Sarac, Aysegul
  • Absi, Nabil
  • Dauzère-Pérès, Stéphane

Abstract

RFID technologies may improve the potential benefits of supply chain management through reduction of inventory losses, increase of the efficiency and speed of processes and improvement of information accuracy. Various RFID systems can be obtained by combining different tags, readers, frequencies and levels of tagging, etc. The cost and potential profit of each system change in a wide range. In this paper, a state-of-the-art on RFID technology deployments in supply chains is given to analyze the impact on the supply chain performance. Potential benefits, particularly against inventory inaccuracy problems, the bullwhip effect and replenishment policies, are briefly surveyed. Various works addressing analytic modeling, simulations, case studies and experiments as well as ROI analyses are reviewed. Finally, conclusions and future research perspectives are presented.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:77-95
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00283-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Emerson, Denise & Zhou, Wei & Piramuthu, Selwyn, 2009. "Goodwill, inventory penalty, and adaptive supply chain management," European Journal of Operational Research, Elsevier, vol. 199(1), pages 130-138, November.
    3. repec:hal:journl:hal-02312465 is not listed on IDEAS
    4. Geary, S. & Disney, S.M. & Towill, D.R., 2006. "On bullwhip in supply chains--historical review, present practice and expected future impact," International Journal of Production Economics, Elsevier, vol. 101(1), pages 2-18, May.
    5. Szmerekovsky, Joseph G. & Zhang, Jiang, 2008. "Coordination and adoption of item-level RFID with vendor managed inventory," International Journal of Production Economics, Elsevier, vol. 114(1), pages 388-398, July.
    6. Doerr, Kenneth H. & Gates, William R. & Mutty, John E., 2006. "A hybrid approach to the valuation of RFID/MEMS technology applied to ordnance inventory," International Journal of Production Economics, Elsevier, vol. 103(2), pages 726-741, October.
    7. repec:hal:journl:hal-02312467 is not listed on IDEAS
    8. Zhou, Wei, 2009. "RFID and item-level information visibility," European Journal of Operational Research, Elsevier, vol. 198(1), pages 252-258, October.
    9. Nicole DeHoratius & Ananth Raman, 2008. "Inventory Record Inaccuracy: An Empirical Analysis," Management Science, INFORMS, vol. 54(4), pages 627-641, April.
    10. Fosso Wamba, Samuel & Lefebvre, Louis A. & Bendavid, Ygal & Lefebvre, Élisabeth, 2008. "Exploring the impact of RFID technology and the EPC network on mobile B2B eCommerce: A case study in the retail industry," International Journal of Production Economics, Elsevier, vol. 112(2), pages 614-629, April.
    11. 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.
    12. Candace Arai Yano & Hau L. Lee, 1995. "Lot Sizing with Random Yields: A Review," Operations Research, INFORMS, vol. 43(2), pages 311-334, April.
    13. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
    14. Bottani, Eleonora & Rizzi, Antonio, 2008. "Economical assessment of the impact of RFID technology and EPC system on the fast-moving consumer goods supply chain," International Journal of Production Economics, Elsevier, vol. 112(2), pages 548-569, April.
    15. repec:hal:journl:hal-02312466 is not listed on IDEAS
    16. Frank Chen & Zvi Drezner & Jennifer K. Ryan & David Simchi-Levi, 2000. "Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information," Management Science, INFORMS, vol. 46(3), pages 436-443, March.
    17. Fleisch, Elgar & Tellkamp, Christian, 2005. "Inventory inaccuracy and supply chain performance: a simulation study of a retail supply chain," International Journal of Production Economics, Elsevier, vol. 95(3), pages 373-385, March.
    18. A. Gürhan Kök & Kevin H. Shang, 2007. "Inspection and Replenishment Policies for Systems with Inventory Record Inaccuracy," Manufacturing & Service Operations Management, INFORMS, vol. 9(2), pages 185-205, February.
    19. 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.
    20. Lee J. Krajewski & Barry E. King & Larry P. Ritzman & Danny S. Wong, 1987. "Kanban, MRP, and Shaping the Manufacturing Environment," Management Science, INFORMS, vol. 33(1), pages 39-57, January.
    21. Kim, Jindae & Tang, Kaizhi & Kumara, Soundar & Yee, Shang-Tae & Tew, Jeffrey, 2008. "Value analysis of location-enabled radio-frequency identification information on delivery chain performance," International Journal of Production Economics, Elsevier, vol. 112(1), pages 403-415, March.
    22. Paul Zipkin, 2006. "OM ForumThe Best Things in Life Were Free: On the Technology of Transactions," Manufacturing & Service Operations Management, INFORMS, vol. 8(4), pages 321-329, October.
    23. Donald L. Iglehart & Richard C. Morey, 1972. "Inventory Systems with Imperfect Asset Information," Management Science, INFORMS, vol. 18(8), pages 388-394, April.
    24. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
    25. Thonemann, U. W., 2002. "Improving supply-chain performance by sharing advance demand information," European Journal of Operational Research, Elsevier, vol. 142(1), pages 81-107, October.
    26. Agrawal, Sunil & Sengupta, Raghu Nandan & Shanker, Kripa, 2009. "Impact of information sharing and lead time on bullwhip effect and on-hand inventory," European Journal of Operational Research, Elsevier, vol. 192(2), pages 576-593, January.
    27. Sahin, Evren & Buzacott, John & Dallery, Yves, 2008. "Analysis of a newsvendor which has errors in inventory data records," European Journal of Operational Research, Elsevier, vol. 188(2), pages 370-389, July.
    28. Nishtha Langer & Chris Forman & Sunder Kekre & Alan Scheller-Wolf, 2007. "Assessing the Impact of RFID on Return Center Logistics," Interfaces, INFORMS, vol. 37(6), pages 501-514, December.
    29. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    30. Nicole DeHoratius & Adam J. Mersereau & Linus Schrage, 2008. "Retail Inventory Management When Records Are Inaccurate," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 257-277, November.
    31. Sahin, Evren & Dallery, Yves, 2009. "Assessing the impact of inventory inaccuracies within a Newsvendor framework," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1108-1118, September.
    32. 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.
    33. Tzeng, Shiou-Fen & Chen, Wun-Hwa & Pai, Fan-Yun, 2008. "Evaluating the business value of RFID: Evidence from five case studies," International Journal of Production Economics, Elsevier, vol. 112(2), pages 601-613, April.
    34. Holweg, Matthias & Disney, Stephen & Holmström, Jan & Småros, Johanna, 2005. "Supply Chain Collaboration:: Making Sense of the Strategy Continuum," European Management Journal, Elsevier, vol. 23(2), pages 170-181, April.
    35. Uçkun, Canan & Karaesmen, Fikri & Savas, Selçuk, 2008. "Investment in improved inventory accuracy in a decentralized supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 546-566, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Cannella, Salvatore & Framinan, Jose M. & Bruccoleri, Manfredi & Barbosa-Póvoa, Ana Paula & Relvas, Susana, 2015. "The effect of Inventory Record Inaccuracy in Information Exchange Supply Chains," European Journal of Operational Research, Elsevier, vol. 243(1), pages 120-129.
    3. Cannella, Salvatore & Dominguez, Roberto & Framinan, Jose M., 2017. "Inventory record inaccuracy – The impact of structural complexity and lead time variability," Omega, Elsevier, vol. 68(C), pages 123-138.
    4. T. Saikouk & I. Zouaghi & A. Spalanzani, 2011. "Mitigating Supply Chain System Entropy by the Implementation of RFID," Post-Print halshs-00665653, HAL.
    5. 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.
    6. Kök, A. Gürhan & Shang, Kevin H., 2014. "Evaluation of cycle-count policies for supply chains with inventory inaccuracy and implications on RFID investments," European Journal of Operational Research, Elsevier, vol. 237(1), pages 91-105.
    7. Xu, Jinpeng & Jiang, Wei & Feng, Gengzhong & Tian, Jun, 2012. "Comparing improvement strategies for inventory inaccuracy in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 213-221.
    8. Dai, Hongyan & Li, Jianbin & Yan, Nina & Zhou, Weihua, 2016. "Bullwhip effect and supply chain costs with low- and high-quality information on inventory shrinkage," European Journal of Operational Research, Elsevier, vol. 250(2), pages 457-469.
    9. 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.
    10. 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.
    11. Ponte, Borja & Costas, José & Puche, Julio & Pino, Raúl & de la Fuente, David, 2018. "The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 165-185.
    12. Ferrer, Geraldo & Dew, Nicholas & Apte, Uday, 2010. "When is RFID right for your service?," International Journal of Production Economics, Elsevier, vol. 124(2), pages 414-425, April.
    13. 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.
    14. Sodhi, ManMohan S. & Tang, Christopher S., 2011. "The incremental bullwhip effect of operational deviations in an arborescent supply chain with requirements planning," European Journal of Operational Research, Elsevier, vol. 215(2), pages 374-382, December.
    15. 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.
    16. Rekik, Yacine & Syntetos, Aris & Jemai, Zied, 2015. "An e-retailing supply chain subject to inventory inaccuracies," International Journal of Production Economics, Elsevier, vol. 167(C), pages 139-155.
    17. de Lima, Daruichi Pereira & Fioriolli, José Carlos & Padula, Antonio Domingos & Pumi, Guilherme, 2018. "The impact of Chinese imports of soybean on port infrastructure in Brazil: A study based on the concept of the “Bullwhip Effect”," Journal of Commodity Markets, Elsevier, vol. 9(C), pages 55-76.
    18. 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.
    19. Zhang, Allan N. & Goh, Mark & Meng, Fanwen, 2011. "Conceptual modelling for supply chain inventory visibility," International Journal of Production Economics, Elsevier, vol. 133(2), pages 578-585, October.
    20. Thiel, Daniel & Hovelaque, Vincent & Thi Le Hoa, Vo, 2010. "Impact of inventory inaccuracy on service-level quality in (Q,R) continuous-review lost-sales inventory models," International Journal of Production Economics, Elsevier, vol. 123(2), pages 301-311, February.

    More about this item

    Keywords

    RFID Supply chain management ROI;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:77-95. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.