Exploring the impacts of radio frequency identification (RFID) technology on supply chain performance

This paper is aimed at providing a framework to help managers of a supply chain enterprise determine the appropriate operational and environmental conditions under which investing in radio frequency identification (RFID) technology is more beneficial. For this purpose, a four-echelon supply chain that is operated under different levels of collaboration is examined in a comprehensive simulation model. Results from the simulation model show that integrating RFID technology within a supply chain provides significantly greater benefits when the level of collaboration between the participants is more intensive. In addition, the results also show that these benefits are stronger when lead times are longer and/or when demand uncertainty in marketplace is lower.