Abstract
This study illustrates the application of lean management and Radio Frequency Identification (RFID) technology to improve the logistics efficiency in a distribution center. The distribution center stores more than ten million parts belonging to about ten thousand types. There are more than ten thousand storage and retrieval operations for hundreds of part types on a daily basis. Value stream mapping was used to draw current state mapping with material flow, information flow, and time flow. Based on the concept of business process reengineering, future state mapping with RFID application was developed. Preliminary experiments showed that 100% read rate was achieved with a fixed RFID reader and an antenna installed at a garage door and Ultra-High Frequency passive tags mounted on each pallet. The benefit using RFID in the distribution center is analyzed (e.g., with a saving of cycle time and process time by 24% and 22%, respectively) and promoted.
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