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An Analysis of the Impact of RFID Technology on Inventory Systems

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Unique Radio Innovation for the 21st Century

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Abstract

Nowadays, most enterprises undertake large investments in order to implement information systems that support decision making for managing inventories. Nevertheless, if data collected from the physical processes used to feed these systems are not correct, there will be severe impacts on business performance. Inventory inaccuracy occurs when the inventory level in the Information System is not in agreement with the physically available inventory. In this chapter, we first describe the major factors generating inventory inaccuracy. Then, we provide situations permitting to manage an inventory system subject to errors. We provide a framework to model the inventory inaccuracy issue and focus on the impact of advanced identification systems, such as that provided by RFID technology, in improving the performance of a supply chain subject to inventory inaccuracies.

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Notes

  1. 1.

    http://www.ecr.org/

  2. 2.

    The introduction of fixed cost can be done by an additional ROI analysis

  3. 3.

    The sign \(E[.]\) in the results is used to express the expected value

  4. 4.

    The introduction of fixed cost can be done by an additional ROI analysis

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Authors and Affiliations

  1. EMLYON Business School, 23 avenue Guy de Collongues, 69134, Ecully, France

    Yacine Rekik

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  1. Yacine Rekik
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Correspondence to Yacine Rekik .

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Editors and Affiliations

  1. School of Electrical & Electronic, Engineering, University of Adelaide, Adelaide, 5005, Australia

    Damith C. Ranasinghe

  2. School of Electrical & Electronic, Engineering, University of Adelaide, Adelaide, 5005, Australia

    Quan Z. Sheng

  3. Dept. Computer Science &, Information Technology, University of the District of Columbia, Connecticut Ave. NW., 4200, Washington, 20008, USA

    Sherali Zeadally

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Rekik, Y. (2011). An Analysis of the Impact of RFID Technology on Inventory Systems. In: Ranasinghe, D., Sheng, Q., Zeadally, S. (eds) Unique Radio Innovation for the 21st Century. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03462-6_20

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  • DOI: https://doi.org/10.1007/978-3-642-03462-6_20

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-03461-9

  • Online ISBN: 978-3-642-03462-6

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