Managing a Retail Perishable Product with RFID-enabled Inventory Visibility

Özgen Karaer

2015

Abstract

Radio Frequency Identification Technology (RFID) helps reduce or completely eliminate inventory record inaccuracy at retail stores, and thus facilitates inventory visibility in the system. In this paper, we investigate the value of RFID-enabled inventory visibility for a retailer that sells perishable/seasonal merchandise, such as fashion apparel. Because the retailer already commits to a total quantity for the item before the season begins, we cannot anticipate an increase in sales or a reduction in holding cost. Here, we formulate the value as a change in total revenue generated from the product. We characterize how this impact changes with respect to various factors in the model and identify its components.

References

  1. Ashton, K. (2011). Whither the Five-Cent Tag? www.rfidjournal.com (retrieved: August 1, 2014).
  2. C¸akici, O. E., Groenevelt, H., and Seidmann, A. (2011). Using RFID for the Management of Pharmaceutical Inventory - System Optimization and Shrinkage Control. Decision Support Systems, 51.
  3. Collins, J. (2006). RFID Goes Underground in London. www.rfidjournal.com (retrieved: August 1, 2014).
  4. de Kok, A. G., Donselaar, K. H. V., and Woensel, T. V. (2008). A Break-even Analysis of RFID Technology for Inventory Sensitive to Shrinkage. International Journal of Production Economics, 112.
  5. DeHoratius, N., Merserau, A. J., and Schrage, L. (2008). Retail Inventory Management When Records are Inaccurate. Manufacturing & Service Operations Management, 10(2):257-277.
  6. DeHoratius, N. and Raman, A. (2008). Inventory Record Inaccuracy: An Empirical Analysis. Management Science, 54.
  7. Fleisch, E. and Tellkamp, C. (2005). Inventory Inaccuracy and Supply Chain Performance: A Simulation Study of a Retail Supply Chain. International Journal of Production Economics, 95.
  8. Gaukler, G. M., O zer, O., and Hausman, W. H. (2008). Order Progress Information: Improved Dynamic Emergency Ordering Policies. Production and Operations Management, 17(6):599-613.
  9. Kang, Y. and Gershwin, S. B. (2005). Information Inaccuracy in Inventory Systems: Stock Loss and Stockout. IIE Transactions, 37.
  10. Karaer, O. and Lee, H. L. (2007). Managing the Reverse Channel with RFID-Enabled Negative Demand Information. Production and Operations Management, 16(5):625-645.
  11. Kök, A. G. and Shang, K. H. (2007). Inspection and Replenishment Policies for Systems with Inventory Record Inaccuracy. Manufacturing & Service Operations Management, 9(2):185-205.
  12. Lee, H. L. and O zer, O. (2007). Unlocking the Value of RFID. Production and Operations Management, 16(1):40-64.
  13. Merserau, A. J. (2013). Information-Sensitive Replenishment when Inventory Records are Inaccurate. Production and Operations Management, 22(4).
  14. Pisello, T. (2006). The ROI of RFID in the Supply Chain. www.rfidjournal.com (retrieved: August 1, 2014).
  15. Prince, P. (2013). Hospitals in Japan, China Seek to Save Lives via Pocketsize Reader. www.rfidjournal.com (retrieved: August 1, 2014).
  16. Reda, S. (2010). Ready (Finally) For Item Level Deployment. Stores.org (retrieved: August 1, 2014).
  17. Rekik, Y., Jemai, Z., Sahin, E., and Dallery, Y. (2007). Improving the Performance of Retail Stores Subject to Execution Errors: Coordination versus RFID Technology. OR Spektrum, 29.
  18. Rekik, Y., Sahin, E., and Dallery, Y. (2008). Analysis of the Impact of RFID Technology on Reducing Product Misplacement Errors at Retail Stores. International Journal of Production Economics, 112.
  19. Rekik, Y., Sahin, E., and Dallery, Y. (2009). Inventory Inaccuracy in Retail Stores due to Theft: An Analysis of the Benefits of RFID. International Journal of Production Economics, 118.
  20. Roberti, M. (2010). Wal-Mart Relaunches EPC RFID Effort, Starting With Men's Jeans and Basics. www.rfidjournal.com (retrieved: August 1, 2014).
  21. Sahin, E., Buzacott, J., and Dallery, Y. (2008). Analysis of a Newsvendor Which Has Errors in Inventory Data Records. European Journal of Operational Research, 188.
  22. Sarac¸, A., Absi, N., and Dauzere-Peres, S. (2010). A Literature Review on the Impact of RFID Technologies on Supply Chain Management. International Journal of Production Economics, 128.
  23. Staff (2003). The best thing since the bar-code. www.economist.com (retrieved: August 1, 2014).
  24. Staff (2011). Macy's pushing to get RFID technology into stores. www.businessweek.com (retrieved: August 1, 2014).
  25. Swedberg, C. (2013). Russian Tag Company Reaches for a Worldwide Audience. www.rfidjournal.com (retrieved: August 1, 2014).
Download


Paper Citation


in Harvard Style

Karaer Ö. (2015). Managing a Retail Perishable Product with RFID-enabled Inventory Visibility . In Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-075-8, pages 179-184. DOI: 10.5220/0005253001790184


in Bibtex Style

@conference{icores15,
author={Özgen Karaer},
title={Managing a Retail Perishable Product with RFID-enabled Inventory Visibility},
booktitle={Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2015},
pages={179-184},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0005253001790184},
isbn={978-989-758-075-8},
}


in EndNote Style

TY - CONF
JO - Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - Managing a Retail Perishable Product with RFID-enabled Inventory Visibility
SN - 978-989-758-075-8
AU - Karaer Ö.
PY - 2015
SP - 179
EP - 184
DO - 10.5220/0005253001790184