Optimal radio frequency identification deployment in a supply chain network

Seokcheol Chang; Diego Klabjan; Thomas Vossen

doi:10.1016/j.ijpe.2010.01.004

Optimal radio frequency identification deployment in a supply chain network

Seokcheol Chang, Diego Klabjan, Thomas Vossen^*

^*Corresponding author for this work

Industrial Engineering and Management Sciences

Research output: Contribution to journal › Article › peer-review

32 Scopus citations

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.

Original language	English (US)
Pages (from-to)	71-83
Number of pages	13
Journal	International Journal of Production Economics
Volume	125
Issue number	1
DOIs	https://doi.org/10.1016/j.ijpe.2010.01.004
State	Published - May 2010

Keywords

Facility location
RFID
Supply chain management

ASJC Scopus subject areas

Business, Management and Accounting(all)
Economics and Econometrics
Management Science and Operations Research
Industrial and Manufacturing Engineering

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Cite this

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title = "Optimal radio frequency identification deployment in a supply chain network",

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.",

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