Abstract
This empirical study examines the potential of RFID technology to increase the business agility and coordination of inventory supply chain systems. The bullwhip effect is a logistics management phenomenon in supply chain systems that is characterized by a lack of business agility. This study examines the potential of radio frequency identification (RFID) technology to increase the business agility and coordination of inventory supply chain systems, greatly reducing the bullwhip effect through timely information provided throughout the supply chain. An experiment of one group of 15 teams using a simulated RFID-enabled supply chain system compared mean team costs with those of a control group of 15 teams, providing empirical evidence that RFID-technology can increase a supply chain’s business agility, as manifested by a reduction in inventory holding and stockout costs.
This research was sponsored by the Kevin and Debra Rollins Center for eBusiness at Brigham Young University.
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© 2005 International Federation for Information Processing
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Vance, A. (2005). An Empirical Investigation of the Potential of RFID Technology to Enhance Supply Chain Agility. In: Baskerville, R.L., Mathiassen, L., Pries-Heje, J., DeGross, J.I. (eds) Business Agility and Information Technology Diffusion. TDIT 2005. IFIP International Federation for Information Processing, vol 180. Springer, Boston, MA. https://doi.org/10.1007/0-387-25590-7_9
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DOI: https://doi.org/10.1007/0-387-25590-7_9
Publisher Name: Springer, Boston, MA
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