RFID Application in Supply Chain Systems

Supply chain strategic planning requires accurate information from reliable sources. This study investigates the usefulness of radio frequency identification (RFID) technology in an assembly flow line of a supply chain. To evaluate its usefulness in an assembly production, a simulation model is generated. Two types of components, preprocessed and semi-finished, are entered into assembly facility (or area) with and without RFID tag integrated. Each component needs certain processing separately prior to assembly operation. The model compares the utilization of time and resources between two configurations, ‘with’ and ‘without’ active RFIDenabled component tracking in the assembly production facility. The result from the case study show better performance of an RFID-enabled model than manual material handling model because of quick identifying components, automatic component separation, fast tracking and effective relocation based on condition and time.