DocumentCode :
3623967
Title :
A Decision Model to Analyze Costs and Benefits of RFID for Superior Supply Chain Performance
Author :
Ertunga C. Ozelkan;Yesim Sireli;Maria Paola Munoz;Sriram Mahadevan
Author_Institution :
Engineering Management Program, The University of North Carolina at Charlotte, Charlotte, NC, USA
Volume :
2
fYear :
2006
fDate :
7/1/2006 12:00:00 AM
Firstpage :
610
Lastpage :
617
Abstract :
Radio frequency identification (RFID) is believed to change drastically how supply chains operate, giving more control and visibility into the materials and information flowing through the entire chain. While adoption of RFID technology is starting to ramp up, many supply chain players are still skeptical due to the high costs. The purpose of this paper is to analyze the cost versus the benefits of RFID. Given the uncertainties regarding the RFID technology and scarcity of related data, a simulation model is built to carry out a net present value (NPV) analysis for various possible business scenarios. The parameters considered in our simulation experiments include company size, margins, tag prices, fixed costs, increased sale and margin benefits. The resulting NPV distributions help us identify the risk and the volumes and margins that make RFID a viable option
Keywords :
"Cost benefit analysis","Performance analysis","Radiofrequency identification","Supply chains","Marketing and sales","Manufacturing","Business","Radio frequency","Lean production","Counterfeiting"
Publisher :
ieee
Conference_Titel :
Technology Management for the Global Future, 2006. PICMET 2006
ISSN :
2159-5100
Print_ISBN :
1-890843-14-8
Type :
conf
DOI :
10.1109/PICMET.2006.296660
Filename :
4077437
Link To Document :
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