A Simulation Approach to Evaluate the Impact of Introducing RFID Technologies in a Three-Level Supply Chain

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Executive Summary

The aim of this paper is to analyze the impacts of RFID technologies on supply chain performances, in particular to evaluate their economical impacts and to conduct ROI (Return-On-Investment) analyses. The paper simulates a three-level supply chain in which thefts, misplacements and unavailable items for sale cause inventory inaccuracies that decrease the supply chain performance. The paper compares the effects of different RFID technologies and with different tagging levels for different product types. The main originality of the research is that it is considered that there are various possible RFID systems of different costs and potential profits. The results indicate that different technologies can improve the supply chain performance at different ratios. The economical impacts depend on the chosen technology, the tagging level and the product.

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