Optimal radio frequency identification deployment in a supply chain network

Seokcheol Chang, Diego Klabjan, Thomas Vossen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-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 languageEnglish (US)
Pages (from-to)71-83
Number of pages13
JournalInternational Journal of Production Economics
Volume125
Issue number1
DOIs
StatePublished - 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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