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Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect

Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect

Anthony Vance, Paul Benjamin Lowry, Jeffrey A. Ogden
Copyright: © 2010 |Volume: 1 |Issue: 1 |Pages: 19
ISSN: 1947-9573|EISSN: 1947-9581|ISSN: 1947-9573|EISBN13: 9781616929640|EISSN: 1947-9581|DOI: 10.4018/jal.2010090204
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MLA

Vance, Anthony, et al. "Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect." IJAL vol.1, no.1 2010: pp.48-66. http://doi.org/10.4018/jal.2010090204

APA

Vance, A., Lowry, P. B., & Ogden, J. A. (2010). Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect. International Journal of Applied Logistics (IJAL), 1(1), 48-66. http://doi.org/10.4018/jal.2010090204

Chicago

Vance, Anthony, Paul Benjamin Lowry, and Jeffrey A. Ogden. "Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect," International Journal of Applied Logistics (IJAL) 1, no.1: 48-66. http://doi.org/10.4018/jal.2010090204

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Abstract

This study examines the potential of RFID technology to increase the agility of supply-chain e-commerce systems by mitigating the bullwhip effect. The bullwhip effect is a supply-chain phenomenon that reveals a lack of business agility characterized by the amplification of inventory variance. This study employs an experiment involving a modified Beer Distribution Game to simulate an RFID-enabled supply chain. The results provide empirical evidence that RFID technology can increase a supply chain’s agility and reduce the bullwhip effect by reducing inventory holding costs, stock out costs, and inventory-level variances. The results are all the more important when applied to interorganizational e-commerce systems.

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