Optimal radio frequency identification deployment in a supply chain network

Seokcheol Chang, Diego Klabjan and Thomas Vossen

International Journal of Production Economics, 2010, vol. 125, issue 1, 71-83

Abstract: In recent years, the use of radio frequency identification (RFID) within supply chain management has received considerable attention. A significant upfront investment together with uncertain return on investment, however, remain impediments to deployments of RFID systems. This paper proposes a novel approach to analyze the potential benefits of RFID systems. We suggest deployment strategies that determine an optimal location of RFID within a supply chain network. The resulting models can be used to evaluate the value of information with respect to item losses. In addition, we discuss methods for solving the resulting large-scale optimization problems, and analyze how various system characteristics impact optimal deployment strategies as well as the overall RFID benefits.

Keywords: RFID; Supply; chain; management; Facility; location (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:125:y:2010:i:1:p:71-83

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