A Tool Set for Exploring the Value of RFID in a Supply Chain

  • Ying Tat Leung
  • Feng Cheng
  • Young M. Lee
  • James J. Hennessy
Part of the Springer Series in Advanced Manufacturing book series (SSAM)


In recent years, radio-frequency identification (RFID) has emerged as an important technology to facilitate the management of a supply chain. Because the technology is expensive and time-consuming to implement on a large scale, most enterprises require a relatively rigorous business case to support the decision whether or when to adopt the technology. To enable the development of such business cases, a tool set has been developed to quantify the business value of RFID for different participants in a manufacturing-retail supply chain. The tool set consists of two tools which are linked: A business value model, implemented as an in-house developed application using commercial spreadsheet software, and a business process model, implemented using a commercial discrete-event simulation package. The business process model computes and provides certain supply chain performance metrics to the business value model, which are otherwise difficult to obtain. Because it is not trivial to capture the full range of potential benefits of RFID, it is necessary to coordinate two different types of decision support tools (spreadsheets and computer simulation).


Supply Chain Cash Flow Business Case Indirect Benefit Business Process Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag London Limited 2007

Authors and Affiliations

  • Ying Tat Leung
    • 1
  • Feng Cheng
    • 2
  • Young M. Lee
    • 2
  • James J. Hennessy
    • 3
  1. 1.IBM Almaden Research CenterSan JoseUSA
  2. 2.IBM Thomas J. Watson Research CenterYorktown HeightsUSA
  3. 3.IBM Global Business ServicesNew YorkUSA

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