IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v126y2010i2p324-334.html
   My bibliography  Save this article

Determining the value of asset location information systems in a manufacturing environment

Author

Listed:
  • Kelepouris, Thomas
  • McFarlane, Duncan

Abstract

The efficiency of manufacturing operations is often seriously affected by significant amounts of time spent searching for misplaced assets. Real-time location systems (RTLS) provide a promising approach for reducing wasted time. Given the difference in information precision and system costs, the quantification of the expected benefits from these systems is a challenging task. In this paper we present an analytic method for calculating the expected savings from a location information system and we demonstrate this through a case example. The model enables us to compare different location information systems and provides insights into the factors that affect the value that each system delivers.

Suggested Citation

  • Kelepouris, Thomas & McFarlane, Duncan, 2010. "Determining the value of asset location information systems in a manufacturing environment," International Journal of Production Economics, Elsevier, vol. 126(2), pages 324-334, August.
    • Handle: RePEc:eee:proeco:v:126:y:2010:i:2:p:324-334
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00130-1
    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. Schlee, Edward, 1990. "The Value of Information in Anticipated Utility Theory," Journal of Risk and Uncertainty, Springer, vol. 3(1), pages 83-92, March.
    2. Thiesse, Frédéric & Fleisch, Elgar, 2008. "On the value of location information to lot scheduling in complex manufacturing processes," International Journal of Production Economics, Elsevier, vol. 112(2), pages 532-547, April.
    3. Klein, Thomas & Thomas, André, 2009. "Opportunities to reconsider decision making processes due to Auto-ID," International Journal of Production Economics, Elsevier, vol. 121(1), pages 99-111, September.
    4. 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.
    5. Kim, Jindae & Tang, Kaizhi & Kumara, Soundar & Yee, Shang-Tae & Tew, Jeffrey, 2008. "Value analysis of location-enabled radio-frequency identification information on delivery chain performance," International Journal of Production Economics, Elsevier, vol. 112(1), pages 403-415, 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.
    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. Tang, Lin & Cao, Hui & Zheng, Li & Huang, Ningjian, 2015. "Value-driven uncertainty-aware data processing for an RFID-enabled mixed-model assembly line," International Journal of Production Economics, Elsevier, vol. 165(C), pages 273-281.
    2. Zhou, Wei & Piramuthu, Selwyn, 2012. "Manufacturing with item-level RFID information: From macro to micro quality control," International Journal of Production Economics, Elsevier, vol. 135(2), pages 929-938.

    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. Zhou, Wei & Piramuthu, Selwyn, 2012. "Manufacturing with item-level RFID information: From macro to micro quality control," International Journal of Production Economics, Elsevier, vol. 135(2), pages 929-938.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Ayodeji Emmanuel Oke & Ahmed Farouk Kineber & Mohamed Elseknidy & Fakunle Samuel Kayode, 2023. "Radio frequency identification implementation model for sustainable development: A structural equation modeling approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1824-1844, June.
    8. Viet, Nguyen Quoc & Behdani, Behzad & Bloemhof, Jacqueline, 2018. "Value of Information to Improve Daily Operations in High-Density Logistics," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(1), January.
    9. Yuangyai, Chumpol & Pan, Chung-Yu & Lin, Yi-Jou & Cheng, Chen-Yang, 2015. "Investigating of antenna selection for the adaptive centroid localization systems," International Journal of Production Economics, Elsevier, vol. 167(C), pages 119-127.
    10. Mona Haji & Laoucine Kerbache & Mahaboob Muhammad & Tareq Al-Ansari, 2020. "Roles of Technology in Improving Perishable Food Supply Chains," Logistics, MDPI, vol. 4(4), pages 1-24, December.
    11. Romauch, Martin & Hartl, Richard F., 2017. "Capacity planning for cluster tools in the semiconductor industry," International Journal of Production Economics, Elsevier, vol. 194(C), pages 167-180.
    12. Simon Grant & Atsushi Kajii & Ben Polak, 2000. "Preference for Information and Dynamic Consistency," Theory and Decision, Springer, vol. 48(3), pages 263-286, May.
    13. Nathalie Etchart, 2002. "Adequate Moods for non-eu Decision Making in a Sequential Framework," Theory and Decision, Springer, vol. 52(1), pages 1-28, February.
    14. Nilgun Fescioglu-Unver & Sung Hee Choi & Dongmok Sheen & Soundar Kumara, 2015. "RFID in production and service systems: Technology, applications and issues," Information Systems Frontiers, Springer, vol. 17(6), pages 1369-1380, December.
    15. 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.
    16. Bruno Bassan & Olivier Gossner & Marco Scarsini & Shmuel Zamir, 2003. "Positive value of information in games," International Journal of Game Theory, Springer;Game Theory Society, vol. 32(1), pages 17-31, December.
    17. Masoud Zafarzadeh & Magnus Wiktorsson & Jannicke Baalsrud Hauge, 2021. "A Systematic Review on Technologies for Data-Driven Production Logistics: Their Role from a Holistic and Value Creation Perspective," Logistics, MDPI, vol. 5(2), pages 1-32, April.
    18. Ali, S. Nageeb, 2018. "Herding with costly information," Journal of Economic Theory, Elsevier, vol. 175(C), pages 713-729.
    19. 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.
    20. Grant, Simon & Kajii, Atsushi & Polak, Ben, 1998. "Intrinsic Preference for Information," Journal of Economic Theory, Elsevier, vol. 83(2), pages 233-259, December.

    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:126:y:2010:i:2:p:324-334. 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.