A financial viability analysis of a RFID system in the microcomputer supply chain

Frederico Wergne De Castro Filho; Lucas X. Travassos; Paulo S. Figueiredo

doi:10.15675/gepros.v32i4.948

A financial viability analysis of a RFID system in the microcomputer supply chain

Authors

Frederico Wergne De Castro Filho Integrated Center of Manufacture and Technology – National Service of Industrial Learning - DR / Av. Orlando Gomes 1845 – Piatã, Salvador, Bahia - Brazil, 41650-050. Phone: 71.3462-9500/ Fax: 71.3462-9599
Lucas X. Travassos Universidade Federal de Santa Catarina
Paulo S. Figueiredo Integrated Center of Manufacture and Technology – National Service of Industrial Learning - DR / Av. Orlando Gomes 1845 – Piatã, Salvador, Bahia – Brazil, 41650-050. Phone: 71.3462-9500/ Fax: 71.3462-9599

DOI:

https://doi.org/10.15675/gepros.v32i4.948

Abstract

The purpose of this study is to describe a methodology to assess the financial viability of radio frequency identification (RFID) applications and the main contributions of this technology. The impact of RFID technology on supply chain processes was assessed using an Internal Rate of Return analysis. An extensive, six-month discussion and refinement process with the logistics and supply chain managers of the company under study was conducted to validate the procedure and to collect the necessary data. Such technology enables inventory control, tracking of parts/products and customer satisfaction. The viability of using RFID technology for inventory control and product tracking was confirmed. Among the benefits obtained: the reduction of one worker from the inventory team, reduction in the costs for replacing a component and reduction in the costs incurred with defective components were found. This is one of the few attempts to quantify RFDI technology’s contribution.

Keywords: Economic Engineering. RFID. Radio Frequency Identification. Financial Viability Analysis. Internal Rate Of Return. Process Automation.

Author Biographies

Frederico Wergne De Castro Filho, Integrated Center of Manufacture and Technology – National Service of Industrial Learning - DR / Av. Orlando Gomes 1845 – Piatã, Salvador, Bahia - Brazil, 41650-050. Phone: 71.3462-9500/ Fax: 71.3462-9599

Frederico has an MSc from Senai Cimatec. His research interests are Automating Manufacturing Systems and RFID.

Lucas X. Travassos, Universidade Federal de Santa Catarina

He finished his PhD at the L’Ecole Centrale de Lyon (France). His research interests are Numerical Modeling and Industrial Engineering.

Paulo S. Figueiredo, Integrated Center of Manufacture and Technology – National Service of Industrial Learning - DR / Av. Orlando Gomes 1845 – Piatã, Salvador, Bahia – Brazil, 41650-050. Phone: 71.3462-9500/ Fax: 71.3462-9599

Paulo has a Doctoral Degree from Boston University and does research in Operations Management. His research interests include System Dynamics modeling and Product Pipeline Management.

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Published

2014-05-13

How to Cite

De Castro Filho, F. W., Travassos, L. X., & Figueiredo, P. S. (2014). A financial viability analysis of a RFID system in the microcomputer supply chain. Revista Gestão Da Produção Operações E Sistemas, 32(4), 9. https://doi.org/10.15675/gepros.v32i4.948

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Issue

No. 4 (2013)

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Articles

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