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

Alp Ustundag*, Mehmet Tanyas

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

166 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)29-38
Number of pages10
JournalTransportation Research Part E: Logistics and Transportation Review
Volume45
Issue number1
DOIs
Publication statusPublished - Jan 2009

Keywords

  • Radio Frequency Identification (RFID)
  • Simulation model
  • Supply chain

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