Abstract
RFID is a technology that continues to evolve, improve, and grow. The number of ways the technology can be used to help companies stay efficient increases in a highly competitive environment. For companies that are still looking for ways to improve their supply chain and their warehouse operations, RFID technology is something worth exploring. It can save companies time and money and can be an especially great technology to adopt for companies that are growing at a rapid pace. Case studies comparing large health care systems provider in Pittsburgh, PA with a large manufacturing company, Boeing, located Everett, WA were cited to highlight best business practices of RFID applications to the warehousing function.
TopIntroduction
Chapter Overview of RFID Technologies and its Applications
Although radio frequency identification (RFID) technologies have been around for some time, the use of the technology in supply chain management (SCM) and its associated operations is still being explored and yet to be fully implemented/adopted by many companies. Basically, RFID uses electromagnetic fields to help with identifying and tracking objects. The number of ways that the technology can be used is almost endless as many examples can be found in preventing theft, expediting inspections, keeping track of surgical sponges, safeguarding pharmaceuticals, helping farmers with vital crop and social moisture information, to name a few (Hamidi, Farahmand, Sajjadi, & Nygard, 2012; Kumar, Shankar, & Yadav, 2011; Mathirajan, Manoj, & Ramachandran, 2011; More & Babu, 2012). RFID technology used in warehouses for receiving product, picking orders, packaging shipments, and tracking deliveries can save a company time and money and is part of an array of available Automatic identification and data capture technologies (AIDC), including the universally accepted barcodes. For growing companies such as the University of Pittsburgh Medical Center (UPMC) and Boeing, the introduction can help them remain efficient during these times of prosperity and growth.
Key Terms in this Chapter
JIT: JIT methodologies are intended to maximize the ability to respond to consumer preferences but simultaneously reduce levels of inventories via lean or cost-sensitive approaches. It is hoped by the eliminating any wasteful or non-value added activities, a firm can strategically level automation and its highly skilled.
Inventory Control: Inventory control is the concept by which the negative aspects of maintaining inventories (i.e., less capital to invest elsewhere, costs associated with shrinkage and storage) are balanced with its positive aspects (i.e., having goods and services available in a JIT fashion). A number of traditional models are used to optimize levels of inventory (i.e., Minimum Stock, Economic Order Quantity (EOQ), and Safety Stock methods) that help determine minimum stock necessary to adequately maintain production levels.
Radio Frequency Identification (RFID): RFID technologies are types of automatic data capture techniques that use a combination of active and passive senders and receivers to collect and store codified information for further uses. The implementation of such technologies should lead to improved managerial and/or supply chain performance. On the surface, there appears to be few drawbacks to implementing such technology into a production process, assuming it enhances performance and improves output of the product. The main issues surrounding the RFID applications are whether the initial costs and labor required to utilize this technology are worth it, and will result in a positive outcome of revenues.
Automatic Identification and Data Capture Technologies (AIDC): Types of AIDC-related technologies to leave the human element out of the data collection and storage functions of information derived from manufacturing, integrated through the manufacturing process, types of authentication concerns and/or e-security strategies, and relationship links to customer profiles. Typical types of AIDC include, bar-coding, RFID, magnetic strips, touch memory, and smart cards.
Toyota Production System (TPS): TPS is an optimum set of approaches to inventory production planning systems by creating economies of scale while producing in relatively small-batch volumes. The aim of the process is to apply scientific methods to obtain the best available quality, lowest costs, and shortest lead times via simultaneously reducing of waste or non-value added activities. TPS has two major considerations, JIT and jidoka.