Citation

Gandomi Nezhad, Ali Reza (2013) Applications and evaluation of adoption of RFID technology in dairy industry. Masters thesis, Multimedia University.

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Abstract

In this study, our aim is to identify applications evaluate adoption of RFID technology employment in dairy and food industry especially in iran.For the study environment , we consider SOLICO dairy and food group as the biggest dairy and food industrial group in Iran.In doing so,at first we have reviewed the article related applications, cost and benefits of RFID technology and the supply chain management problems including inventory inaccuracy and bullwhip effect which can be solved by employing the technology as well as providing a description of the food industrial group. Furthermore, we will also review articles related different approaches for the evaluation and quantifying of RFID technology including analytical, simulation, experimental and case study. After we develop our knowledge about RFID, we will select a simulation approach and consider the inventory inaccuracy and bullwhip effect in our simulation. We have used ARENA simulation software to simulate the daily activities of the distribution centre in which, the level of physical inventory may be different with information system inventory due to some errors that may occur during the daily activity of the distribution centre including shrinkage errors (theft error and inaccessible products errors), scan errors and shipment errors, and unseen variation of market demand. To import inventory inaccuracy problem and bullwhip effect into our simulation model, we have induced the errors to the model to make different the value of physical inventory to the value of the information system inventory, randomly. These errors cause stock out and lost sale to be considered as cost items. So, the cost of operating the centre is increased by the occurrence of the errors. By considering three different configurations of RFID technology in three scenarios including without RFID tagging, which is base scenarios, pallet level tagging, and item level tagging, all or some part of the errors were removed from the simulation model and so the cost of operation is decreased by less lost sale and so, a profit value is achieved by the value of reduction of operation cost. In our simulation model, we have used data from one of the distribution centers of the SOLICO group,named Bandar abbas city to define the model parameters including the frequency and magnitude of the errors, which have occurred in the centre during one year ago. In addition, we have considered the cost of tags, readers and required hardware and software as the technology cost. By using a NPV and ROI analysis, we have reached this conclusion that only RFID technology in pallet level tagging for the food distribution centre is the economic investment.

Item Type:	Thesis (Masters)
Additional Information:	Call No.: TK6570.I34 A45 2013
Subjects:	T Technology > TK Electrical engineering. Electronics Nuclear engineering
Divisions:	Faculty of Management (FOM) > MBA Programme
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	17 Apr 2014 03:05
Last Modified:	17 Apr 2014 03:05
URII:	http://shdl.mmu.edu.my/id/eprint/5428

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