08 Aug RFID
The RFID (Radio Frequency IDentification) technology is a well-known wireless application for traceability, logistics, and access control. It became ubiquitous in industry and our daily life (ticketing, payment, passports, car keys, etc.). RFID is nowadays a standardized technology; its inherent advantages, which are unitary, identification, wireless communication, and low cost of tags, provide it with decisive practical benefits that drive new developments in terms of concepts and applications. This trend is largely confirmed by the market forecast, but also by its implementation in the area of health (smart hospital), assistance to persons, anti-counterfeiting, as well as by its perspective in terms of new paradigms for distributed ambient intelligence and the Internet of Things.
Any RFID system is composed of three main elements: the tag that embeds specific information of the item on which it is attached, the reader that empowers the tag and reads the information stored within it and a data base that processes the information and performs the global RFID application (Duroc et al, 2018).
Information and communication technologies provide firms with advanced tools such as RFID to locate every product. RFID are playing an important technical role in helping firms promptly acquire a mass amount of information, which is big data, to make accurate decision. Fosso Wamba et al. (2016) develops a conceptual model and find that the intention of small and midsized enterprises to adopt RFID technology is mainly related to RFID’s relative advantage and compatibility, the firm’s size and location (Wang et al, 2017).
During the early years of when Radio-frequency identification (RFID) is referred to the “big bang” (Visich et al., 2009), RFID was much argued as an effective way to solve misplacement problems by tracking items and providing real-time inventory information (Gaukler et al., 2007; Heese, 2007; Camdereli & Swaminathan, 2010; Hardgrave et al., 2013). The cumulative number of RFID tags sold over the last 60 years is 3.752 billion, with 27% sold in 2006 and 19% in 2005. The market is expected to rise to $27.88 billion in 2017 (Das and Harrop, 2007).
The RFID cost has long been identified as a barrier to RFID adoption. When implementing RFID in a supply chain, the manufacturer places an RFID tag on each (semi-) finished item, and this same tag can be reused by a downstream retailer (e.g. Whang, 2010). Although a single RFID tag is cheap, the tagging cost is a significant factor in RFID adoption, because it can cause expensive total spending due to the huge quantity of product items (Duroc et al, 2018).
- Camdereli, A., Swaminathan, J. (2010). “Misplaced inventory and radio-frequency identification (RFID) technology: information and coordination”. Production and Operations Management, 19(1): 1-18.
- Das, R., Harrop, P. (2007). “RFID forecasts”. Players & opportunities 2007–2017. IDTechEx Ltd, Cambridge, UK.
- Duroc, Y., Tedjini, S. (2018). “RFID: A key technology for HumanityLa RFID: une technologie clé au service de l’humanité”. Comptes Rendus Physique, Volume 19, Issues 1–2, Pages 64-71.
- Fosso Wamba, S., Gunasekaran, A., Bhattacharya, M., & Dubey, R. (2016). “Determinants of RFID adoption intention by SMEs: an empirical investigation”. Production Planning & Control, 1-12.
- Gaukler, G., Seifert, R., Hausman, W. (2007). “Item-level RFID in the retail supply chain”. Production and Operations Management, 16(1): 65-76.
- Hardgrave, B., Aloysius, J., Goyal. S. (2013). “RFID-enabled visibility and retail inventory record inaccuracy: experiments in the field”. Production and Operations Management, 22(4): 843-856.
- Heese, H. (2007). “Inventory record inaccuracy, double, marginalization and RFID adoption”. Production and Operations Management, 16(7): 221-229.
- Visich, J., Khumawala, S. Li, B. (2009). “Empirical evidence of RFID impacts on supply chain performance”. International Journal of Operations & Production Management, 29(12), 1290-1315.
- Wang, H., Gong, Q., Wang, Sh. (2017). “Information processing Structures and Decision making Delays in MRP and JIT”. International Journal of Production Economics, Volume 188, June 2017, Pages 41-49.
- Whang, S. (2010). “Timing of RFID adoption in a supply chain”. Management Science, 56(2): 343-355.