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RFID value in aircraft parts supply chains: A case study

Author

Listed:
  • Ngai, Eric W.T.
  • Cheung, Bernard K.S.
  • Lam, S.S.
  • Ng, C.T.

Abstract

The value of Radio Frequency Identification (RFID) in the maintenance of supply chains of aircraft parts is examined, particularly in the proposed analytical model. This model helps us gain a better understanding of the relationships between various costs incurred and the RFID effect on an aircraft maintenance tracking process. Using an RFID system, a maintenance company specializing in aircraft parts can accumulate savings based on the assumption that the technology can eliminate inaccuracy problems related to inventory recording delays brought about by mishandling in the component repair process. This case study illustrates such phenomenon through the use of numerical assumptions, highlighting the benefits of RFID. Further, the value of RFID in aircraft maintenance is evaluated using sensitivity analysis, in accordance with the parameters of the model of cost reductions in mishandling repair components and inventory control. The findings support the industry's acceptance of RFID technology, proving that this is beneficial to maintenance companies of aircraft parts.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:147:y:2014:i:pb:p:330-339
    DOI: 10.1016/j.ijpe.2012.09.017
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. 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.
    2. Dai, Hongyan & Ge, Ling & Zhou, Weihua, 2015. "A design method for supply chain traceability systems with aligned interests," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 14-24.
    3. Gong, Qiguo & Yang, Yuru & Wang, Shouyang, 2014. "Information and decision-making delays in MRP, KANBAN, and CONWIP," International Journal of Production Economics, Elsevier, vol. 156(C), pages 208-213.
    4. 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.
    5. 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.
    6. 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.

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