The impact of RFID on management of returnable containers

Lars Thoroe · Adam Melski · Matthias Schümann

39 citations0/0 files storedElectronic Markets

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Supply Chain and Inventory Management RFID technology advancements Logistics and Transportation Systems

Abstract

Inventory shrinkage is a common problem in the management of returnable containers. RFID-based container tracking systems have been proposed as a possible solution. Benefits of RFID-based tracking of returnable transport items such as pallets, kegs and boxes are documented in several case studies, but have so far hardly been analyzed from a theoretical perspective. In this article, we analyze the impact of RFID on container management using a deterministic inventory model. The analysis focuses firstly on inventory control for which we deduce changes due to RFID for the optimum policy. We then turn to the profitability of the RFID system and determine relevant relations of costs and benefits. Finally we analyze alternatives of implementing an RFID-based container tracking system. These alternatives are analyzed with respect to diffusion speed and profitability.

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References

1997Quantitative models for reverse logistics: A review 1990How Many Parts to Make at Once 2004Reverse logistics : quantitative models for closed-loop supply chains 1995Returnable containers: an example of reverse logistics 1967A deterministic inventory model for reparable items 2005Information inaccuracy in inventory systems: stock loss and stockout 1996The EOQ repair and waste disposal model with variable setup numbers 2007Inventory Record Inaccuracy, Double Marginalization, and RFID Adoption

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