A hybrid approach to the valuation of RFID/MEMS technology applied to ordnance inventory

We report on an analysis of the costs and benefits of fielding Radio Frequency Identification/MicroElectroMechanical System (RFID/MEMS) technology for the management of ordnance inventory. A factorial model of these benefits is proposed. Our valuation approach combines a multi-criteria tool for the valuation of qualitative factors with a Monte-Carlo simulation of anticipated financial factors. In a sample survey, qualitative factors are shown to account of over half of the anticipated benefits. The scale of the financial benefits, however, was sufficiently great to obviate the need for further analysis of qualitative factors.