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Improving inventory accuracy using RFID technology: a case study

Daniel Hellström (Division of Packaging Logistics, Department of Design Sciences, Lund University, Lund, Sweden)
Mathias Wiberg (Division of Packaging Logistics, Department of Design Sciences, Lund University, Lund, Sweden)

Assembly Automation

ISSN: 0144-5154

Article publication date: 28 September 2010

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Abstract

Purpose

This paper aims to explore and describe the impact of radio frequency identification (RFID) technology on inventory accuracy within a production and assembly plant, and to propose a model for assessing the impact of the technology on inventory accuracy.

Design/methodology/approach

The empirical investigation, based on case study research, focuses on an RFID implementation at a supplier of injection‐moulded, surface‐treated plastic to the automotive industry. This implementation is one of the few item‐level, open‐loop RFID implementations in the automotive industry.

Findings

The empirical paper provides insights into, how inventory accuracy has been improved and made attainable in practice by implementing RFID, and indicates that the technology ensures inventory inaccuracy will be kept at a minimum. As a result, an analytical model is presented which identifies the impact of RFID technology on inventory accuracy.

Research limitations/implications

The case study and context need to be considered when generalising upon the findings. Furthermore, it is hoped future research could further develop the model presented and test it against implementation practice.

Practical implications

RFID technology provides practitioners with the opportunity to eliminate waste, and improve production and assembly performance. The research provides practitioners with experience of, and insights into how a production and assembly plant has improved inventory accuracy by implementing RFID technology. In particular, practitioners are provided with a model which enables them to assess the impact of RFID on inventory accuracy.

Originality/value

This paper contributes to the RFID community by providing empirical insights into the impact of RFID technology on inventory accuracy, but also more broadly into logistics and operations management research.

Keywords

Citation

Hellström, D. and Wiberg, M. (2010), "Improving inventory accuracy using RFID technology: a case study", Assembly Automation, Vol. 30 No. 4, pp. 345-351. https://doi.org/10.1108/01445151011075807

Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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