Delivery Supply Chain Planning Using Radio Frequency Identification (RFID)-Enabled Dynamic Optimization

Abstract

For the past few years, many companies have investigated potential of radio frequency identification (RFID) technologies by conducting pilot project. Whereas successful cases were reported for supply chains, companies experienced under-achievement of their target on return on investment (ROI) due to various reasons. First of all, RFID hardware itself would be limited in satisfying functionality and performance of user requirements. The RFID hardware has been mature because RFID vendors have made a lot of effort to develop more robust RFID tags and readers. Except for harsh manufacturing environment, RFID hardware can be satisfactorily implemented right through RF design and calibration. Second, RFID would have been applied to inappropriate applications. In order to take a competitive advantage, some companies rushed to implement the RFID by selecting improper applications. The RFID is effective in an environment where materials, work-in-process and finished products are moving dynamically. Third, no sufficient planning and analysis would have been conducted as to the use of RFID data, the impact of RFID on other business processes and the connectivity to related information systems. This can lessen business benefits of the RFID capability.