Impacts of Radio Frequency Identification (RFID) technology on supply chain

Abstract

Radyo Frekanslı Tanıma (RFID) teknolojisi, etrafında anten sarılı olan bir mikroçip (etiket) ve bir okuyucudan oluşan otomatik tanıma sistemidir (Auto-ID). Veri ve enerji transferi, etiket ve okuyucu arasında herhangi bir temas olmadan sağlanmaktadır. Okuyucunun yaydığı elektromanyetik dalgalar antenle buluşmakta ve etiket içindeki devreleri harekete geçirmektedir. Etiket dalgaları modüle ederek okuyucuya geri göndermekte ve okuyucu da yeni dalgayı dijital veri haline dönüştürmektedir. RFID teknolojisi, tedarik zincirinde süreç verimliliğini, doğruluk, güvenlik ve görünürlük seviyelerini artırmaktadır. Tedarik zincirinin her aşamasında gerçek zamanlı stok ve lojistik bilgisi, üretici, dağıtıcı ve perakendeci tarafından paylaşılabilmektedir. Yatırım değerinin yüksekliği ve süreçlerin yeniden yapılandırılması, RFID yatırımlarının, firmalar açısından stratejik bir karar olarak değerlendirilmesi gerektiğini göstermektedir. RFID uygulama başarısının sağlanması için öncelikle kapsamlı bir değerlendirme analizinin yapılması, teknoloji yatırımının oluşturduğu maliyetlerin ve sağladığı kazanımların en detaylı şekilde incelenmesi gerekmektedir. Tedarik zinciri üzerinde gerçekleşecek RFID yatırımı için, zincir üyeleri arasındaki etkileşimin de değerlendirme aşamasında göz önüne alınması gerekmektedir. Bu çalışmada perakendeci, dağıtıcı ve üreticiden oluşan tedarik zincirinde gerçekleşecek RFID yatırımının etkilediği maliyet faktörleri belirlenmekte, maliyet değişiminden kaynaklanan kazanımlar benzetim modeli yardımı ile ortaya koyulmaktadır. Ürün değeri, temin süresi ve talep belirsizliği bağımsız değişkenlerinin maliyet faktörleri üzerindeki etkisi araştırılmaktadır. Nihai olarak tedarik zinciri kazanım oranına dayalı etiket maliyet paylaşımını esas alan RFID yatırım değerlendirme modeli önerilmektedir. Anahtar Kelimeler: RFID, tedarik zinciri, maliyet, benzetim modeli, yatırım değerlendirme.Radio frequency identification (RFID) technology introduces the opportunity for increased visibility by facilitating easy tracking and identifying of goods, assets and even living things. However, high investment cost and inadequate technical capability remain as challenges for RFID system implementations. That being the case, fair evaluation of savings associated with increasing performance and investment costs has a great role in the success of RFID projects. RFID is an Automatic Identification (Auto-ID) system consisting of a microchip with a coiled antenna (tag) and a reader. Data and energy are transmitted without any contact between the tag and the reader. The reader sends out electromagnetic waves that form a magnetic field so the microchip's circuits are powered. The chip modulates the waves and sends back to the reader. The reader converts the new waves into digital data. Radio Frequency Identification (RFID) is regarded as the future technology for the optimization of supply chain processes. It can improve manufacturing and retail operations, from forecasting demand to planning, managing inventory and distribution. Real time inventory and logistics information is shared at any stage of the supply chain. The supply chain processes gain many benefits from RFID technology. These are better managing and tracking of the supply chain, less time and lower cost for inventory management, lower labor requirement, less inventory shrinkage, improved customer service and better modeling of the customer behavior. RFID provides efficiency, accuracy, visibility and security on the supply chain. Real time inventory and logistics information is shared at any stage of the supply chain by the supplier, manufacturer, distributor and retailer. In this study using a simulation model, the cost differences between an RFID applied and non-applied system are examined on a supply chain consisting of a retailer, distributor and producer. Considering misplacement, shipment error, theft and damage ratios, physical and system inventory levels are determined. The expected benefits obtained through the performance increase of efficiency, accuracy, visibility and security levels are calculated on RFID integrated supply chain considering the lost sales, theft, inventory, order and labor cost factors. The influences of the product value, lead time and demand uncertainty factors are examined on an RFID integrated supply chain by using experimental design. According to the research results, the total supply chain cost savings are increased through the raising product prices. This increase is predominantly based on the theft and lost sales cost savings due to the increase of the unit cost; however the savings at the retailer are higher than the savings at the distributor and producer. Despite the decrease of the inventory level on the supply chain, the total inventory cost savings are increased due to the raising product prices. The gap between the system and physical inventory level is decreased, thus the loss of the order costs are reduced. The total retailer cost savings are increased through the increased lead time due to the decrease of the lost sales cost savings. Raising the lead time also increases the total theft cost savings. Through the increase of the inventory level on the supply chain, the total inventory and process cost savings are increased. The loss of the order costs are reduced by raising lead times due to the ascending inventory level. The total supply chain cost savings are decreased through the raising demand uncertainty due to the increased lost sales. The decrease of the cost savings are noticed at each level of the supply chain. The increase of demand uncertainty causes the reduction of the inventory cost savings. The influence of the product value on the total supply chain cost savings is higher than the influence of the demand uncertainty. The influence of the demand uncertainty on the total supply chain cost savings is higher than the influence of the lead time. However, the critical and sensitive dependent cost factor is the lost sales cost savings on the whole supply chain. The total cost savings at retailer are higher than cost savings at distributor and producer. In the end of the study, an RFID investment evaluation model is proposed which is considering the sharing of the total cost of the tags according to the expected benefits of each member of the supply chain. Keywords: Radio Frequency Identification (RFID), supply chain, simulation model, investment evaluation

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