Johnamae A. Khow J
ABSTRACT
This paper studied the inventory management system of a local dealer of auto and heavy machinery parts that had experienced a series of inventory losses backed by discrepancies in the physical count of items versus the record in their database. Subsequently, the company implemented Radio Frequency Identification (RFID) technology to improve the process and mitigate losses due to item shrinkage and displacement. By conducting a series of interviews and examining inventory records, the study aimed to assess the impact and effectivity of using RFID in inventory management in the retail and wholesale establishment and determine if the cost of implementation is a sound investment. The findings of this study show that the implementation of RFID technology in the company has improved their inventory management, which was supported by the significant reduction of inventory record variances and the common issues faced in the day-to-day operations of warehouse management such as misplacement of items.
- Dai, H., & Tseng, M. M. (2012). The impacts of RFID implementation on reducing inventory inaccuracy in a multi-stage supply chain. International Journal of Production Economics, 139 (2), 634–641. https://doi.org/10.1016/j.ijpe.2012.06.005Google Scholar
Cross Ref
- Fan, T., Chang, X., Gu, C., Yi, J., & Deng, S. (2013). Benefits of RFID technology for reducing inventory shrinkage. International Journal of Production Economics, 147, 659–665. https://doi.org/10.1016/j.ijpe.2013.05.007Google ScholarCross Ref
- Tao, F., Fan, T., Lai, K. K., & Li, L. (2016). Impact of RFID technology on inventory control policy. Journal of the Operational Research Society, 68 (2), 207–220. https://doi.org/10.1057/s41274-016-0030-5Google ScholarCross Ref
- Rekik, Y., Sahin, E., & Dallery, Y. (2009). Inventory inaccuracy in retail stores due to theft: An analysis of the benefits of RFID. International Journal of Production Economics, 118 (1), 189–198. https://doi.org/10.1016/j.ijpe.2008.08.048Google ScholarCross Ref
- Travassos, X., Figueiredo, P., & Filho, F.(2014). Use of the RFID Technology to Overcome Inefficiencies in the Production Process: an Analysis of a Microcomputer Company in Ilhéus – Bahia. Journal of Information Systems and Technology Management, 11 (1). https://doi.org/10.4301/s1807-17752014000100005Google Scholar
- Wang, S. J., Wang, W. L., Huang, C. T., & Chen, S. C. (2011). Improving inventory effectiveness in RFID-enabled global supply chain with Grey forecasting model. The Journal of Strategic Information Systems, 20 (3), 307–322. https://doi.org/10.1016/j.jsis.2011.03.003Google ScholarDigital Library
- Wu, N., Nystrom, M., Lin, T., & Yu, H. (2006). Challenges to Global RFID Adoption.2006 Technology Management for the Global Future - PICMET 2006 Conference. https://doi.org/10.1109/picmet.2006.296595Google Scholar
- Zhang, L.-H., Li, T., & Fan, T.-J. (2018). Radio-frequency identification (RFID) adoption with inventory misplacement under retail competition. European Journal of Operational Research, 270 (3), 1028–1043. https://doi.org/10.1016/j.ejor.2018.04.038Google ScholarCross Ref
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