A Simulation-based RFID Technology Investment Evaluation for Supply Chain of Perishable Materials

The spoilage of perishable products especially foods is a major problem in the supply chain management industry. The RFID technology provides new venue for sharing information in real-time. Proper adoption of RFID technology can affect significantly the challenges for perishable materials. In this paper we investigate the application of RFID technology in supply chain management of perishable food products. We model the relationship between suppliers and producers in a hypothetical chain and evaluate the impact of the use of RFID technology using simulation. By applying RFID technology the FIFO-based entrance of products to the product line is replaced by a FEFO (First Expired First Out) policy. Also we consider the cost of applying the technology in the model and discuss the justification criteria for its usage. Results and implications from the simulations advocate the RFID investment by taking into account the parameters of the supply chain.