RFID data-based inventory management of time-sensitive materials

Abstract

In this paper, an adaptive inventory management model, which is founded on a forecasting algorithm that utilizes RFID-based state and event data for tracking and dispatching of time sensitive materials in a manufacturing facility, is presented. The impact of integrating RFID technologies with inventory control on the shop floor is discussed. This study compares a traditional, static inventory model with the proposed model on the basis of cost savings, inventory and waste reduction, and decision making complexity. The validity of the proposed model is demonstrated in a simulation environment, which also demonstrates the overall benefits and effectiveness of RFID technologies in providing low cost manufacturing solutions, reduced inventory levels, and lower overall waste.