June
4th, 2009 – Wollongong, NSW Australia
/ Montreal, QC, Canada
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Abstract
This paper examines the case of one supply chain in the
electricity sector where RFID technology integrated with
firm’s information systems acts as an enabler of process
optimization. Using a business process approach and
laboratory simulation, we explain how the implementation
of RFID technology can increase the visibility of
information at various layers of the supply chain, allowing
members to gather precise information on real demand and
improve replenishment processes. On the other hand,
while RFID technology has the potential to automate some
processes, human intervention is still required. Therefore,
use case scenarios and sensitivity analysis should be
carefully considered when selecting the proper design
(architecture options) for the virtual and hardware
components of RFID systems. The choice of the
appropriate configuration needs to be integrated in the
firm’s strategies and supply chain partner’s vision.
1. Introduction
Over the past, RFID technology
(Radio-Frequency Identification) has attracted
the attention of the scientific community.
This increasing interest can be ascertained
through various special issues on the topic
in academic journals such as International
Journal of Production Economics, Production
and Operations Management, IEEE Transactions
on Automation Science and Engineering, International
Journal of Electronic Business and Journal
of Theoretical and Applied Electronic Commerce
Research. Following this trend, this paper
addresses the case of one supply chain in
the electricity sector with emphasis on
internal customers in charge of the power
grid maintenance and operation. The main
objective of the paper is to explain how
RFID technology integrated with firm’s information
systems can act as an enabler of process
optimization and enhance the efficiency
of a supply chain.
Section 2 presents RFID
technology. In section 3, a literature review
is presented with regards to supply chain
optimization integrating RFID technology,
followed in section 4 by an evaluation of
the business value of information technology.
In Section 5, the context of the study is
presented followed in section 6, by the
research design where the business process
approach and laboratory simulation are presented.
In section 7, selected RFID-enabled scenarios
are discussed in terms of process optimization.
Lastly, the conclusion and future research
are presented in section 8.
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