Skip to main content
SpringerLink
Log in

Enhancing the management of shared inventory in the steel industry using RFID: an alternative to bar codes

  • Original Article
  • Published:
International Journal of Machine Learning and Cybernetics Aims and scope Submit manuscript

Abstract

An inventory problem of a company that specializes in cutting steel coils into rolls and sheets of steel is addressed in this paper. Rolls and sheets of steel require a high level of customization depending on the specifications by the end user. This causes complexity in the management of finished goods, mainly due to the wide variety of dimensions of the rolls and sheets that are in the storage area. Due to the great variety of products built for stock, it is not possible to define a specific location in the storage area to place a product. For a company located in México, recent data show that the percentage of obsolete inventory (items stored more than 90 days) is 7 %. The objective of this work is to reduce this percentage to 0 %. From a time study, it was learned that searching for finished inventory averaged 15.5 min. This activity consumes a large amount of the available forklift operator time. This means that in situations during which the forklift operator is pressed for time, it may be necessary to abandon the search for the correct finished products in the storage, and instead ship products of more recent production. Over time, the repetition of this event generates increased rates of obsolete inventory. The proposal to solve the problem was to reduce the search times through the implementation of a system that identifies inventory using RFID technology. This will improve the quality of the stored information, and therefore reduce the rate of obsolescence.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8

Similar content being viewed by others

References

  1. García A, Chang YS, Valverde R (2006) Impact of new identification and tracking technologies on a distribution center. Comput Ind Eng 51(3):542–552

    Article  Google Scholar 

  2. Wang SJ, Liu SF, Wang WL (2008) The simulated impact of RFID-enabled supply chain on pull-based inventory replenishment in TFT-LCD industry. Int J Prod Econ 112(2):570–586

    Article  Google Scholar 

  3. Demiralp G, Guven G, Ergen E (2012) Analyzing the benefits of RFID technology for cost sharing in construction supply chains: a case study on prefabricated precast components. Autom Constr 24:120–129

    Article  Google Scholar 

  4. Hsu CI, Shih HH, Wang WC (2009) Applying RFID to reduce delay in import cargo customs clearance process. Comput Ind Eng 57(2):506–519

    Article  Google Scholar 

  5. Chan HL, Choi TM, Hui CL (2012) RFID versus bar-coding systems: transactions errors in health care apparel inventory control. Decis Support Syst 54(1):803–811

    Article  Google Scholar 

  6. Zhou W, Yoon EJ, Piramuthu S (2012) Simultaneous multi-level RFID tag ownership & transfer in health care environments. Decis Support Syst 54(1):98–108

    Article  Google Scholar 

  7. Lu MT, Lin SW, Tzeng GH (2013) Improving RFID adoption in Taiwan’s healthcare industry based on a DEMATEL technique with a hybrid MCDM model. Decis Support Syst 56(1):259–269

    Article  Google Scholar 

  8. Tajima M (2007) Strategic value of RFID in supply chain management. J Purch Supply Manag 13(4):261–273

    Article  Google Scholar 

  9. Doerr KH, Gates WR, Mutty JE (2006) A hybrid approach to the valuation of RFID/MEMS technology applied to ordnance inventory. Int J Prod Econ 103(2):726–741

    Article  Google Scholar 

  10. Kok AG, Donselaar KH, Woensel T (2008) A break-even analysis of RFID technology for inventory sensitive to shrinkage. Int J Prod Econ 112(2):521–531

    Article  Google Scholar 

  11. Liu X, Tang O, Huang P (2008) Dynamic pricing and ordering decision for the perishable food of the supermarket using RFID technology. Asia Pac J Mark Logist 20(1):7–22

    Article  Google Scholar 

  12. Rekik Y, Sahin E, Dallery Y (2009) Inventory inaccuracy in retail stores due to theft: an analysis of the benefits of RFID. Int J Prod Econ 118(1):189–198

    Article  Google Scholar 

  13. Pei J, Klabjan D (2010) Inventory control in serial systems under radio frequency identification. Int J Prod Econ 123(1):118–136

    Article  Google Scholar 

  14. Rekik Y (2011) Inventory inaccuracies in the wholesale supply chain. Int J Prod Econ 133(1):172–181

    Article  Google Scholar 

  15. Ngai EWT, Moon KKL, Riggins FJ, Candance YY (2008) RFID research: an academic literature review (1995–2005) and future research directions. Int J Prod Econ 112(2):510–520

    Article  Google Scholar 

  16. Irani Z, Gunasekaran A, Dwivedi Y (2010) Radio frequency identification (RFID): research trends and framework. Int J Prod Res 48(9):2485

    Article  Google Scholar 

  17. Sarac A, Absi N, Dauzère-Pérès S (2010) A literature review on the impact of RFID technologies on supply chain management. Int J Prod Econ 128(1):77–95

    Article  Google Scholar 

  18. Porter JD, Billo RE, Mickle MH (2004) A standard test protocol for evaluation of radio frequency identification systems for supply chain applications. J Manuf Syst 23(1):46–55

    Article  Google Scholar 

  19. Ngai EWT, Suk FFC, Lo SYY (2008) Development of an RFID-based sushi management system: the case of a conveyor-belt sushi restaurant. Int J Prod Econ 112:630–645

    Article  Google Scholar 

  20. Mourtzis D, Papakostas N, Makris S, Xanthakis V, Chryssolouris G (2008) Supply chain modeling and control for producing highly customized products. CIRP Ann—Manuf Technol 57(1):451–454

    Article  Google Scholar 

  21. Lin LC (2009) An integrated framework for the development of radio frequency identification technology in the logistics and supply chain management. Comput Ind Eng 57(3):832–842

    Article  Google Scholar 

  22. Wang H, Chen S, Xie Y (2010) An RFID-based digital warehouse management system in the tobacco industry: a case study. Int J Prod Res 48(9):2513–2548

    Article  Google Scholar 

  23. Chang S, Klabjan D, Vossen T (2010) Optimal radio frequency identification deployment in a supply chain network. Int J Prod Econ 125(1):71–83

    Article  Google Scholar 

  24. Lee I, Lee B (2010) An investment evaluation of supply chain RFID technologies: a normative modeling approach. Int J Prod Econ 125(2):313–323

    Article  Google Scholar 

  25. Chen S, Wang H, Xie Y, Qi C (2014) Mean-risk analysis of radio frequency identification technology in supply chain with inventory misplacement: risk-sharing and coordination. Omega 46:86–103

    Article  Google Scholar 

  26. Ferrer G, Dew N, Apte U (2010) When is RFID right for your service? Int J Prod Econ 124(2):414–425

    Article  Google Scholar 

  27. Bartholdi JJ, Hackman ST (2014) Warehouse & distribution science. Supply Chain & Logistics Institute School of Industrial and Systems Engineering Georgia Institute of Technology. Georgia, USA. Retrieved from http://www.warehouse-science.com. Accessed 13 Dec 2014

  28. Rekik Y, Sahin E, Dallery Y (2008) Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores. Int J Prod Econ 112(1):264–278

    Article  Google Scholar 

  29. Camdereli AZ, Swaminathan JM (2010) Misplaced inventory and radio-frequency identification (RFID) technology: information and coordination. Prod Oper Manag 19(1):1–18

    Article  Google Scholar 

  30. Chen SL, Kuo SK, Lin CT (2009) A metallic RFID tag design for steel-bar and wire-rod management application in the steel industry. Prog Electromagn Res 91(1):195–212

    Article  Google Scholar 

  31. Kumar S, Anselmo M, Berndt K (2009) Transforming the retail industry: potential and challenges with RFID technology. Transp J 48(4):61–71

    Google Scholar 

Download references

Acknowledgments

This research was supported by the Tecnológico de Monterrey Research Group in Industrial Engineering and Numerical Methods 0822B01006.

Author information

Authors and Affiliations

  1. School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, C.P. 64849, Monterrey, Nuevo León, Mexico

    Hector E. Talavera, Jerry Banks, Neale R. Smith & Leopoldo Eduardo Cárdenas-Barrón

Authors
  1. Hector E. Talavera
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jerry Banks
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Neale R. Smith
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Leopoldo Eduardo Cárdenas-Barrón
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Leopoldo Eduardo Cárdenas-Barrón.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Talavera, H.E., Banks, J., Smith, N.R. et al. Enhancing the management of shared inventory in the steel industry using RFID: an alternative to bar codes. Int. J. Mach. Learn. & Cyber. 6, 733–745 (2015). https://doi.org/10.1007/s13042-015-0406-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13042-015-0406-x

Keywords

Search

Navigation