Applications and evaluation of adoption of RFID technology in dairy industry

In this study, our aim is to identify applications evaluate adoption of RFID technology employment in dairy and food industry especially in iran.For the study environment , we consider SOLICO dairy and food group as the biggest dairy and food industrial group in Iran.In doing so,at first we have r...

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Main Author:	Gandomi Nezhad, Ali Reza
Format:	Thesis
Published:	2013
Subjects:	TK Electrical engineering Electronics Nuclear engineering
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id	my-mmu-ep.5428
record_format	uketd_dc
spelling	my-mmu-ep.54282014-04-17T03:05:14Z Applications and evaluation of adoption of RFID technology in dairy industry 2013-12 Gandomi Nezhad, Ali Reza TK Electrical engineering. Electronics Nuclear engineering In this study, our aim is to identify applications evaluate adoption of RFID technology employment in dairy and food industry especially in iran.For the study environment , we consider SOLICO dairy and food group as the biggest dairy and food industrial group in Iran.In doing so,at first we have reviewed the article related applications, cost and benefits of RFID technology and the supply chain management problems including inventory inaccuracy and bullwhip effect which can be solved by employing the technology as well as providing a description of the food industrial group. Furthermore, we will also review articles related different approaches for the evaluation and quantifying of RFID technology including analytical, simulation, experimental and case study. After we develop our knowledge about RFID, we will select a simulation approach and consider the inventory inaccuracy and bullwhip effect in our simulation. We have used ARENA simulation software to simulate the daily activities of the distribution centre in which, the level of physical inventory may be different with information system inventory due to some errors that may occur during the daily activity of the distribution centre including shrinkage errors (theft error and inaccessible products errors), scan errors and shipment errors, and unseen variation of market demand. To import inventory inaccuracy problem and bullwhip effect into our simulation model, we have induced the errors to the model to make different the value of physical inventory to the value of the information system inventory, randomly. These errors cause stock out and lost sale to be considered as cost items. So, the cost of operating the centre is increased by the occurrence of the errors. By considering three different configurations of RFID technology in three scenarios including without RFID tagging, which is base scenarios, pallet level tagging, and item level tagging, all or some part of the errors were removed from the simulation model and so the cost of operation is decreased by less lost sale and so, a profit value is achieved by the value of reduction of operation cost. In our simulation model, we have used data from one of the distribution centers of the SOLICO group,named Bandar abbas city to define the model parameters including the frequency and magnitude of the errors, which have occurred in the centre during one year ago. In addition, we have considered the cost of tags, readers and required hardware and software as the technology cost. By using a NPV and ROI analysis, we have reached this conclusion that only RFID technology in pallet level tagging for the food distribution centre is the economic investment. 2013-12 Thesis http://shdl.mmu.edu.my/5428/ http://library.mmu.edu.my/diglib/onlinedb/dig_lib.php masters Multimedia University Graduate School of Management
institution	Multimedia University
collection	MMU Institutional Repository
topic	TK Electrical engineering Electronics Nuclear engineering
spellingShingle	TK Electrical engineering Electronics Nuclear engineering Gandomi Nezhad, Ali Reza Applications and evaluation of adoption of RFID technology in dairy industry
description	In this study, our aim is to identify applications evaluate adoption of RFID technology employment in dairy and food industry especially in iran.For the study environment , we consider SOLICO dairy and food group as the biggest dairy and food industrial group in Iran.In doing so,at first we have reviewed the article related applications, cost and benefits of RFID technology and the supply chain management problems including inventory inaccuracy and bullwhip effect which can be solved by employing the technology as well as providing a description of the food industrial group. Furthermore, we will also review articles related different approaches for the evaluation and quantifying of RFID technology including analytical, simulation, experimental and case study. After we develop our knowledge about RFID, we will select a simulation approach and consider the inventory inaccuracy and bullwhip effect in our simulation. We have used ARENA simulation software to simulate the daily activities of the distribution centre in which, the level of physical inventory may be different with information system inventory due to some errors that may occur during the daily activity of the distribution centre including shrinkage errors (theft error and inaccessible products errors), scan errors and shipment errors, and unseen variation of market demand. To import inventory inaccuracy problem and bullwhip effect into our simulation model, we have induced the errors to the model to make different the value of physical inventory to the value of the information system inventory, randomly. These errors cause stock out and lost sale to be considered as cost items. So, the cost of operating the centre is increased by the occurrence of the errors. By considering three different configurations of RFID technology in three scenarios including without RFID tagging, which is base scenarios, pallet level tagging, and item level tagging, all or some part of the errors were removed from the simulation model and so the cost of operation is decreased by less lost sale and so, a profit value is achieved by the value of reduction of operation cost. In our simulation model, we have used data from one of the distribution centers of the SOLICO group,named Bandar abbas city to define the model parameters including the frequency and magnitude of the errors, which have occurred in the centre during one year ago. In addition, we have considered the cost of tags, readers and required hardware and software as the technology cost. By using a NPV and ROI analysis, we have reached this conclusion that only RFID technology in pallet level tagging for the food distribution centre is the economic investment.
format	Thesis
qualification_level	Master's degree
author	Gandomi Nezhad, Ali Reza
author_facet	Gandomi Nezhad, Ali Reza
author_sort	Gandomi Nezhad, Ali Reza
title	Applications and evaluation of adoption of RFID technology in dairy industry
title_short	Applications and evaluation of adoption of RFID technology in dairy industry
title_full	Applications and evaluation of adoption of RFID technology in dairy industry
title_fullStr	Applications and evaluation of adoption of RFID technology in dairy industry
title_full_unstemmed	Applications and evaluation of adoption of RFID technology in dairy industry
title_sort	applications and evaluation of adoption of rfid technology in dairy industry
granting_institution	Multimedia University
granting_department	Graduate School of Management
publishDate	2013
_version_	1747829572365189120

Applications and evaluation of adoption of RFID technology in dairy industry

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