The Tactical Value Of Rfid

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Abstract Academic researchers have recognised a gap exists between the actual and potential values of radio frequency identification (RFID) technology in supply chain industry. This paper provides understanding into the tactical value of RFID by building a concept on how RFID used in supply chain management may create and withstand a competitive advantage. This reading uses a simulation model to determine the anticipated benefits of an integrated RFID system on a three-echelon supply chain attained through performance increases in efficiency, accuracy, visibility, and security level. The study examines how the product value, lead time, and demand uncertainty affect the performance of the integrated RFID supply chain in terms of cost…show more content…
INTRODUCTION RFID refers to any system that can transmit identification numbers over radio. RFID system is made up of a unique identification number, which is allocated to a specific item, an identity tag which is attached to the item with a chip capable of storing a unique identification number, networked RFID readers and data processing systems that are capable of collecting signals from multiple tags at high speeds and of pre-processing this data, and one or more networked databases that store the product information RFID is a wireless technology, which allows transmission of information without the physical connection. In its most basic form, an RFID system has two components: tags and readers. A tag (transponder) consists of a microchip that stores identification data of the item to which it is attached and an antenna to transmit this data via radio waves. A reader (interrogator) sends out a radio signal and prompts the tag to broadcast the data contained on its chip. The reader then converts the radio waves returned from the tag into digital data and forwards them to a computer system. A reader can scan an area for any tags that are tuned to the same frequency as the reader. The frequency on which the RFID system operates designates the intensity of the radio waves used to transmit information and is a key factor in determining performance levels and applications for the system. Nearly all RFID systems operate
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