Cost Benefit Analysis Essay

Lately Conner and Martin have been working with “radio frequency identification” (RFID) technology. They have developed a detailed system designed to track inventory items using RFID tags embedded invisibly in products. This technology has numerous inventory

Given the facts in the case and as outlined in more detail in this case study, it is our recommendation that Mierdorf and Wolfram move to the case level RFID tagging process. The improvements up and down the supply chain in accuracy, inventory control, reduced labor costs are enough to at least continue with the RFID

As RFID technology evolves and becomes less expensive, there will be an increase in the number of companies and vendors using the technology. Eventually, new applications will be developed and these systems may even be able to solve common or unique problems associated with business in today’s market.

However, it is important to mention about an active RFID technology in order to understand why it is not suitable for the case of the production in-house logistics. Active system provides constant visibility of inventory, they are placed in the zones wherever inventory needs to

The RFID is considered a significant improvement over the conventional barcode, which needs to be read by scanners in "line-of-sight" fashion and can be stripped away if the paper product labels get ripped or damaged. RFID can also facilitate inter-organizational E-commerce initiatives such as continuous replenishment or vendor-managed inventories (Smaros and Holmstrom, 2000).

RFID data is visible and trackable across the supply chain and reduces scanning error, stockouts and the labour required to move inventory (Shin & Eksioglu 2014, p. 633). Importantly, as Concept2creation (n.d.) shows picking and scanning cartons from the cages is labour intensive and requiring audits. Alternatively, RFID transmitters on pallets and cages, can automatically be scanned upon receipt. Cartons without RFID can be placed in totes to be tracked internally (Michel 2014,

Would RFID work to track Products? Well, Bar Codes require a line of sight, so a person(s) with a bar code reader has to get right up on the bar code and scan it. When you are thinking about a supply chain, somebody in the warehouse would have to look at every single case. With RFID, all of the cases on the pallet would be picked up by a single swipe of a reader, even the ones

Hartsfield-Jackson Atlanta International Airport (ATL) should implement radio-frequency identification (RFID) tags in the airport’s baggage-handling operations for a variety of reasons. First, implementing this system will be beneficial to airport workers, travelers, and the airlines. Second, the cost of lost luggage fees and millions of dollars being spent in reimbursements will be significantly reduced. Third, the overall control of luggage will be more efficient and effective. Fourth, traveler satisfaction will improve, as the luggage process will be hassle free.

Although using radio-frequency identification tags in airport baggage-handling operations can be costly, the advantages of implementing this system at the ATL airport will save the airport a lot of money in the long run. These tags do cost significantly more than the standard bar-code tags in which are in use at this time, but the overall fees and reimbursements that are being paid yearly will be significantly reduced if these tags are indeed implemented. While the bar-coding system is inexpensive, the efficiency of the system is its number one downfall. The barcodes often smudge, tear, and most importantly, the tags are set in stone once they are printed. There is no access to make corrections to these tags if a passenger’s destination changes due to, say, inclement weather, flight cancellations, or being re-routed. RFID tags on

The cost saving gained from RFID tagging will continue to increase given that Zalora Singapore is expected to grow, and by reducing wrong items being delivered and more efficiency, it can gain a larger market share in the internet retailing industry in Singapore. Furthermore, the extra profit can be used to fund expansion in other parts of Southeast Asia and the same system can be implemented in other markets given that RFID tagging and reading is a relatively simple IT solution to implement.

As the projects increase in size so does the complexity of associated with them .Large scale projects require a systematic structure so as it stays on schedule and the costs are not escalated. To monitor and control the processes in the construction project the industry is moving towards autonomation. Autonomation of the construction projects has made the process transparent and simple. One such exemplary option of Autonomation is the use of RFID’s in the construction projects. They have been introduced a decade ago but are now being rigorously used. The RFID system provides real time access to data which helps the project teams in decision making process and has several other benefits leading to productivity increase .On the other hand the industry is vigorously diving into lean principles.“The term ‘lean’ refers to using less of everything during production – less labor, less manufacturing space, less equipment, less inventory, and less engineering inputs during development and processing – all of which results in fewer defects and more variety” (Russell, 2009, p. 721). Lean aids to reduce cost and increase profits. Therefore, it would be interesting to get both these phenomenon together as both aim at productivity increase amalgation of the two would lead to more improvements leading to better process flow in turn increasing

Metro Group was Germany’s biggest retailer (250 stores, 10 warehouses, 100 suppliers) that operates globally in 6 divisions: Metro Cash & Carry (wholesale), Retail (hypermarkets), Extra (supermarkets), Media Market and Saturn (consumer electronics), Praktiker (building materials), Galeria Kaufhof

While Intel remains a leader in technologies, the manufacturing processes used are dated, and need to be changed. By implementing RFID technology within Intel warehouses, the company can find gaps within the supply chain, and develop solutions

Airbus has communicated to its suppliers to tag all traceable items with passive RFID transporters (Roberti M., 2015). Boeing is also using this technology to optimize maintenance activities with specific information regarding maintenance history, parts pedigree, etc. (Lu et al., 2006). It means that the most of the parts supplied by these two aircraft manufacturers are already tagged with RFID technology. American airlines can use their business partners experience with RFID technology to improve their warehousing efficiency. Before initiating the RFID project American airlines should discuss and document the different aspects of project including software, hardware, RFID tags, environmental factors, regulatory concerns, reliability, security issues, network, throughput and maintenance.

The advantages associated with using RFID technology for supply management are clearly the reason why Harley Davidson would even consider implementing its use. According to the text, RFIDs can be read much more quickly and with a higher degree of accuracy than bar codes. Bar codes must be