1. Proceedings
  2. I3M
  3. 2021
  4. MAS
  5. 10.46354/i3m.2021.mas.029

RFID and logistics: a cost-benefit analysis to design the most cost-effective RFID set-up for an air cargo handler's warehouse

  • a Elvezia Maria Cepolina , 
  •  b Donato Aquaro
  • a Italian Center of Excellence on Logistics, Transport and Infrastructure, CIELI, University of Genoa, Genoa, 16135, Italy
  • b Department of Civil and Industrial Engineering, University of Pisa, Italy
Cite as
Cepolina E.M., Aquaro D. (2021). RFID and logistics: a cost-benefit analysis to design the most cost-effective RFID set-up for an air cargo handler's warehouse. Proceedings of the 20th International Conference on Modeling & Applied Simulation (MAS 2021), pp. 220-227. DOI: https://doi.org/10.46354/i3m.2021.mas.029

Abstract

The economic viability of RFID technology depends on its costs and benefits. Different implementation set-ups have different costs and lead to different benefits.
This paper proposes simulation as a tool to evaluate the benefits of a given RFID set-up and a cost-benefit analysis to support the choice of the best RFID set-up among alternative ones in a given warehouse.
The proposed methodology has been applied to a real case study: an overhead cargo handling warehouse. Consolidation, security checks and other logistics operations take place here. Airfreight logistics is critical for the distribution of high-value products and for the production of goods in distributed manufacturing systems, such as the pharmaceutical industry. 

References

  1. Banduchi R., Weisshaar C., Smart A.U. (2011). Mapping the benefits and costs associated with process innovation: the case of RFID adoption. Technovation 31, 505-521.
  2. Bottani E. and Rizzi A. (2008) Economical assessment of the impact of RFID technology and EPC system on the fast moving consumer goods supply chain. International Journal of Production Economics, 112 (2), 548-569.
  3. Bruzzone A., Bocca E., Massei M. (2007) Evaluation of the impact of different human factor models on industrial and business processes. Simulation Modelling Practice and Theory.
  4. Cepolina E.M., Giusti I., Menichini F., Aquaro D., Caroti G., Piemonte A. (2018) Simulative analysis for performance measurement of RFID implementation in cargo handler logistics, Proceedings of 20th Int. Conference on Harbor, Maritime and Multimodal Logistics Modeling and Simulation, HMS 2018, Held at the International Multidisciplinary Modeling and Simulation Multiconference, I3M 2018, pp. 44-51.
  5. Giusti I., Cepolina E.M., Cangialosi E., Aquaro D., Caroti G., Piemonte A. (2019) Mitigation of human error consequences in gen-eral cargo handler logistics: Impact of RFID implementation. Computers and Industrial Engineering, 137.
  6. Irani Z., Love P. (2001) The propagation of technology management taxonomies for evaluating investments in information systems. Journal of Management Information Systems, Vol. 17, No. 3, 161-177
  7. Ryan S. and Harrison D.A. (2000) Considering social subsystem costs and benefits in information technology investment decisions: A view from the field on anticipated payoffs, Journal of Management Information Systems, Vol. 16, no. 4, 11-38.
  8. Tellkamp C. (2006) The Impact of Auto-ID Technology on Process Performance – RFID in the FMCG Supply Chain. Dissertation, St. Gallen. 
  9. Veronneau S. and Roy J. (2009) RFID benefits, costs, and possibilities: The economical analysis of RFID deployment in a cruise cor-poration global service supply chain. Int. J. Production Economics 122 692-702.