DECISION ANALYSIS FOR RFID

AbstractLed by competition, companies strive for competitive advantage. Accepting the value-based holistic concept of a supply chain, organizations realize the importance of increased accuracy of communication flow and availability of information at any time and at any point of the supply network. Toward this end, companies are becoming more interested in automatic identification and data collection (AIDC) technology, such as radio frequency identification (RFID), which as part of a wide area network (WAN) can greatly increase supply chain visibility. This paper presents a decision analytic method for selecting appropriate AIDC technology in a warehouse application. Results in this particular application indicate that transaction costs are the primary determining factor.