Reengineering, Simulation and Data Analysis of an RFID System

Eleonora Bottani

doi:10.3390/jtaer3010004

Abstract

We present a discrete event simulation model reproducing the adoption of Radio Frequency Identification (RFID) technology for the optimal management of common logistics processes of a Fast Moving Consumer Goods (FMCG) warehouse. In this study, simulation is exploited as a powerful tool to replicate both the reengineered RFID logistics processes and the flows of Electronic Product Code (EPC) data generated by such processes. Moreover, a complex tool has been developed to analyze data resulting from the simulation runs, thus addressing the issue of how the flows of EPC data generated by RFID technology can be exploited to provide value-added information for optimally managing the logistics processes. Specifically, an EPCIS compliant Data Warehouse has been designed to act as EPCIS Repository and store EPC data resulting from simulation. Starting from EPC data, properly designed tools, referred to as Business Intelligence Modules, provide value-added information for processes optimization. Due to the newness of RFID adoption in the logistics context and to the lack of real case examples that can be examined, we believe that both the model and the data management system developed can be very useful to understand the practical implications of the technology and related information flow, as well as to show how to leverage EPC data for process management. Results of the study can provide a proof-of-concept to substantiate the adoption of RFID technology in the FMCG industry.

Highlights

Radio Frequency Identification (RFID) technology is experiencing an increasing diffusion for the optimization of many logistics systems [3], [36]
Once data stored in the tag are captured, they become available on the EPCglobal Network, a tool for exploiting RFID technology in the supply chain “by using inexpensive RFID tags and readers to pass Electronic Product Code numbers, and leveraging the Internet to access large amounts of associated information that can be shared among authorized users” [12]
Model validation was performed by comparing simulation outputs (i.e. EPC data generated) with those resulting from processes performed at the RFID Lab

Summary

Introduction

Radio Frequency Identification (RFID) technology is experiencing an increasing diffusion for the optimization of many logistics systems [3], [36]. Manufacturing site, production lot, expiry date, components type are among product data that can be stored into the tag chip Such data are recorded in form of an Electronic Product Code (EPC), whose standards have been developed by the Auto-ID Center, a partnership founded in 1999 by five leading research universities and nearly 100 retailers, products manufacturers and software companies [32]. RFID tags solve some of the inefficiencies commonly associated with traditional barcodes, such as, for instance, manually handling cases to read the codes [7], reducing time consumption and avoiding data capturing errors. Once data stored in the tag are captured, they become available on the EPCglobal Network, a tool for exploiting RFID technology in the supply chain “by using inexpensive RFID tags and readers to pass Electronic Product Code numbers, and leveraging the Internet to access large amounts of associated information that can be shared among authorized users” [12]. The implementation of RFID for products tagging and EPCglobal Network for information management is still in its early stage, several companies in the Fast Moving Consumer Goods (FMCG) supply chain are testing their application both for pallet and case level tagging [12]

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Conclusion