IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v125y2010i2p313-323.html
   My bibliography  Save this article

An investment evaluation of supply chain RFID technologies: A normative modeling approach

Author

Listed:
  • Lee, In
  • Lee, Byoung-Chan

Abstract

As Radio Frequency Identification (RFID) technology advances rapidly and major retailers start to push their suppliers to adopt the technology, RFID cost-benefit analysis has become a subject of great focus. RFID complements or replaces barcode systems and traditional manual tracking systems to identify, retrieve, track, and store merchandise automatically. The adoption of this technology is gaining momentum rapidly as technological, societal, and competitive pressures push firms to transform and innovate themselves. Because of the potential benefits gained and high investment costs incurred by RFID, firms need to carefully assess every RFID opportunity and challenge to ensure that their resources are spent judiciously. This paper presents the Supply Chain RFID Investment Evaluation Model, and provides a basis for enhancing our understanding of RFID value creation, measurement, and ways to maximize the value of RFID technology. A future research direction is also discussed.

Suggested Citation

  • Lee, In & Lee, Byoung-Chan, 2010. "An investment evaluation of supply chain RFID technologies: A normative modeling approach," International Journal of Production Economics, Elsevier, vol. 125(2), pages 313-323, June.
    • Handle: RePEc:eee:proeco:v:125:y:2010:i:2:p:313-323
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00055-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ustundag, Alp & Tanyas, Mehmet, 2009. "The impacts of Radio Frequency Identification (RFID) technology on supply chain costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 29-38, January.
    2. Doerr, Kenneth H. & Gates, William R. & Mutty, John E., 2006. "A hybrid approach to the valuation of RFID/MEMS technology applied to ordnance inventory," International Journal of Production Economics, Elsevier, vol. 103(2), pages 726-741, October.
    3. de Kok, A.G. & van Donselaar, K.H. & van Woensel, T., 2008. "A break-even analysis of RFID technology for inventory sensitive to shrinkage," International Journal of Production Economics, Elsevier, vol. 112(2), pages 521-531, April.
    4. Indranil Bose & Chun Wai Lam, 2008. "Facing the Challenges of RFID Data Management," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 1(4), pages 1-19, October.
    5. Rekik, Yacine & Sahin, Evren & Dallery, Yves, 2008. "Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores," International Journal of Production Economics, Elsevier, vol. 112(1), pages 264-278, March.
    6. Tzeng, Shiou-Fen & Chen, Wun-Hwa & Pai, Fan-Yun, 2008. "Evaluating the business value of RFID: Evidence from five case studies," International Journal of Production Economics, Elsevier, vol. 112(2), pages 601-613, April.
    7. Tiernan, Chris & Peppard, Joe, 2004. "Information Technology:: Of Value or a Vulture?," European Management Journal, Elsevier, vol. 22(6), pages 609-623, December.
    8. Fosso Wamba, Samuel & Lefebvre, Louis A. & Bendavid, Ygal & Lefebvre, Élisabeth, 2008. "Exploring the impact of RFID technology and the EPC network on mobile B2B eCommerce: A case study in the retail industry," International Journal of Production Economics, Elsevier, vol. 112(2), pages 614-629, April.
    9. Bottani, Eleonora & Rizzi, Antonio, 2008. "Economical assessment of the impact of RFID technology and EPC system on the fast-moving consumer goods supply chain," International Journal of Production Economics, Elsevier, vol. 112(2), pages 548-569, April.
    10. Ngai, E.W.T. & Moon, Karen K.L. & Riggins, Frederick J. & Yi, Candace Y., 2008. "RFID research: An academic literature review (1995-2005) and future research directions," International Journal of Production Economics, Elsevier, vol. 112(2), pages 510-520, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fan, Tijun & Tao, Feng & Deng, Sheng & Li, Shuxia, 2015. "Impact of RFID technology on supply chain decisions with inventory inaccuracies," International Journal of Production Economics, Elsevier, vol. 159(C), pages 117-125.
    2. Svetlana Nikolicic & Milorad Kilibarda & Marinko Maslaric & Dejan Mircetic & Sanja Bojic, 2021. "Reducing Food Waste in the Retail Supply Chains by Improving Efficiency of Logistics Operations," Sustainability, MDPI, vol. 13(12), pages 1-24, June.
    3. Andrea Luvisi & Yiannis G. Ampatzidis & Luigi De Bellis, 2016. "Plant Pathology and Information Technology: Opportunity for Management of Disease Outbreak and Applications in Regulation Frameworks," Sustainability, MDPI, vol. 8(8), pages 1-12, August.
    4. Yazici, Hulya Julie, 2014. "An exploratory analysis of hospital perspectives on real time information requirements and perceived benefits of RFID technology for future adoption," International Journal of Information Management, Elsevier, vol. 34(5), pages 603-621.
    5. Cui, Ligang & Deng, Jie & Liu, Rui & Xu, Dongyang & Zhang, Yajun & Xu, Maozeng, 2020. "A stochastic multi-item replenishment and delivery problem with lead-time reduction initiatives and the solving methodologies," Applied Mathematics and Computation, Elsevier, vol. 374(C).
    6. Aiello, Giuseppe & Enea, Mario & Muriana, Cinzia, 2015. "The expected value of the traceability information," European Journal of Operational Research, Elsevier, vol. 244(1), pages 176-186.
    7. Nativi, Juan Jose & Lee, Seokcheon, 2012. "Impact of RFID information-sharing strategies on a decentralized supply chain with reverse logistics operations," International Journal of Production Economics, Elsevier, vol. 136(2), pages 366-377.
    8. Fan, Ti-Jun & Chang, Xiang-Yun & Gu, Chun-Hua & Yi, Jian-Jun & Deng, Sheng, 2014. "Benefits of RFID technology for reducing inventory shrinkage," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 659-665.
    9. Kenan Aydin & Seda Yildirim, 2012. "Case study about RFID System in Library Services," International Journal of Synergy and Research, ToKnowPress, vol. 1(2), pages 91-102.
    10. De Marco, Alberto & Cagliano, Anna C. & Nervo, Mauro L. & Rafele, Carlo, 2012. "Using System Dynamics to assess the impact of RFID technology on retail operations," International Journal of Production Economics, Elsevier, vol. 135(1), pages 333-344.
    11. Yanqi Zhang & Xiaofei Kou & Haibin Liu & Shiqing Zhang & Liangliang Qie, 2022. "IoT-Enabled Sustainable and Cost-Efficient Returnable Transport Management Strategies in Multimodal Transport Systems," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    12. Wong, W.K. & Leung, S.Y.S. & Guo, Z.X. & Zeng, X.H. & Mok, P.Y., 2012. "Intelligent product cross-selling system with radio frequency identification technology for retailing," International Journal of Production Economics, Elsevier, vol. 135(1), pages 308-319.
    13. Shin, Seungjae & Eksioglu, Burak, 2015. "An empirical study of RFID productivity in the U.S. retail supply chain," International Journal of Production Economics, Elsevier, vol. 163(C), pages 89-96.
    14. Tao, Feng & Wang, Liang & Fan, Tijun & Yu, Hao, 2022. "RFID adoption strategy in a retailer-dominant supply chain with competing suppliers," European Journal of Operational Research, Elsevier, vol. 302(1), pages 117-129.
    15. Feng Tao & Tijun Fan & Kin Keung Lai & Lin Li, 2017. "Impact of RFID technology on inventory control policy," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(2), pages 207-220, February.
    16. Lui, Ariel K.H. & Lo, Chris K.Y. & Ngai, Eric W.T., 2019. "Does mandated RFID affect firm risk? The moderating role of top management team heterogeneity," International Journal of Production Economics, Elsevier, vol. 210(C), pages 84-96.
    17. Lei, Quansheng & Chen, Jian & Wei, Xingyu & Lu, Shan, 2015. "Supply chain coordination under asymmetric production cost information and inventory inaccuracy," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 204-218.
    18. Dimakopoulou, Andriana G. & Pramatari, Katerina C. & Tsekrekos, Andrianos E., 2014. "Applying real options to IT investment evaluation: The case of radio frequency identification (RFID) technology in the supply chain," International Journal of Production Economics, Elsevier, vol. 156(C), pages 191-207.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarac, Aysegul & Absi, Nabil & Dauzère-Pérès, Stéphane, 2010. "A literature review on the impact of RFID technologies on supply chain management," International Journal of Production Economics, Elsevier, vol. 128(1), pages 77-95, November.
    2. Véronneau, Simon & Roy, Jacques, 2009. "RFID benefits, costs, and possibilities: The economical analysis of RFID deployment in a cruise corporation global service supply chain," International Journal of Production Economics, Elsevier, vol. 122(2), pages 692-702, December.
    3. De Marco, Alberto & Cagliano, Anna C. & Nervo, Mauro L. & Rafele, Carlo, 2012. "Using System Dynamics to assess the impact of RFID technology on retail operations," International Journal of Production Economics, Elsevier, vol. 135(1), pages 333-344.
    4. Ferrer, Geraldo & Dew, Nicholas & Apte, Uday, 2010. "When is RFID right for your service?," International Journal of Production Economics, Elsevier, vol. 124(2), pages 414-425, April.
    5. Masoud Shakiba & Azam Zavvari & Nader Aleebrahim & Mandeep Jit Singh, 2016. "Evaluating the academic trend of RFID technology based on SCI and SSCI publications from 2001 to 2014," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 591-614, October.
    6. Becker, Jörg & Vilkov, Lev & Weiß, Burkhard & Winkelmann, Axel, 2010. "A model based approach for calculating the process driven business value of RFID investments," International Journal of Production Economics, Elsevier, vol. 127(2), pages 358-371, October.
    7. Reyes, Pedro M. & Li, Suhong & Visich, John K., 2012. "Accessing antecedents and outcomes of RFID implementation in health care," International Journal of Production Economics, Elsevier, vol. 136(1), pages 137-150.
    8. Dimakopoulou, Andriana G. & Pramatari, Katerina C. & Tsekrekos, Andrianos E., 2014. "Applying real options to IT investment evaluation: The case of radio frequency identification (RFID) technology in the supply chain," International Journal of Production Economics, Elsevier, vol. 156(C), pages 191-207.
    9. Ahmed Musa & Al-Amin Abba Dabo, 2016. "A Review of RFID in Supply Chain Management: 2000–2015," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 17(2), pages 189-228, June.
    10. Ferrer, Geraldo & Heath, Susan K. & Dew, Nicholas, 2011. "An RFID application in large job shop remanufacturing operations," International Journal of Production Economics, Elsevier, vol. 133(2), pages 612-621, October.
    11. Biswal, Arun Kumar & Jenamani, Mamata & Kumar, Sri Krishna, 2018. "Warehouse efficiency improvement using RFID in a humanitarian supply chain: Implications for Indian food security system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 205-224.
    12. Agrawal, Paras M. & Sharda, Ramesh, 2012. "Impact of frequency of alignment of physical and information system inventories on out of stocks: A simulation study," International Journal of Production Economics, Elsevier, vol. 136(1), pages 45-55.
    13. Ngai, Eric W.T. & Cheung, Bernard K.S. & Lam, S.S. & Ng, C.T., 2014. "RFID value in aircraft parts supply chains: A case study," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 330-339.
    14. Piramuthu, Selwyn & Wochner, Sina & Grunow, Martin, 2014. "Should retail stores also RFID-tag ‘cheap’ items?," European Journal of Operational Research, Elsevier, vol. 233(1), pages 281-291.
    15. Zhou, Wei & Piramuthu, Selwyn, 2013. "Remanufacturing with RFID item-level information: Optimization, waste reduction and quality improvement," International Journal of Production Economics, Elsevier, vol. 145(2), pages 647-657.
    16. Coronado Mondragon, Adrian E. & Lalwani, Chandra S. & Coronado Mondragon, Etienne S. & Coronado Mondragon, Christian E., 2009. "Facilitating multimodal logistics and enabling information systems connectivity through wireless vehicular networks," International Journal of Production Economics, Elsevier, vol. 122(1), pages 229-240, November.
    17. Svetlana Nikolicic & Milorad Kilibarda & Marinko Maslaric & Dejan Mircetic & Sanja Bojic, 2021. "Reducing Food Waste in the Retail Supply Chains by Improving Efficiency of Logistics Operations," Sustainability, MDPI, vol. 13(12), pages 1-24, June.
    18. Dario Pacciarelli & Andrea D’Ariano & Michele Scotto, 2011. "Applying RFID in warehouse operations of an Italian courier express company," Netnomics, Springer, vol. 12(3), pages 209-222, October.
    19. Sari, Kazim, 2010. "Exploring the impacts of radio frequency identification (RFID) technology on supply chain performance," European Journal of Operational Research, Elsevier, vol. 207(1), pages 174-183, November.
    20. Xu, Jinpeng & Jiang, Wei & Feng, Gengzhong & Tian, Jun, 2012. "Comparing improvement strategies for inventory inaccuracy in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 213-221.

    More about this item

    Keywords

    RFID Supply chain Investment;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:125:y:2010:i:2:p:313-323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.