Abstract
In this paper, we compare three RFID implementation strategies in the inventory management of a retail store. The three strategies are: pallet-level tagging, which deals with fixing RFID tags on pallets only; case-level tagging, which is for fixing RFID tags on cases only; the combined tagging strategy, which is for fixing RFID tags onto both pallets and cases. The objective of this paper to perform a trade-off study between the investment resulting from implementing RFID tagging using these different strategies and the visibility of the inventory level, based on a simulation model. Through using the simulation model, we develop a better understanding of the conditions under which RFID implementation strategies are cost effective.
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