Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/12482
Title: RFID versus bar-coding systems : transactions errors in health care apparel inventory control
Authors: Chan, HL
Choi, TM 
Hui, CL 
Keywords: Health care apparel
Inventory control
RFID
Transactions errors
Issue Date: 2012
Publisher: Elsevier
Source: Decision support systems, 2012, v. 54, no. 1, p. 803-811 How to cite?
Journal: Decision support systems 
Abstract: In recent years, RFID technology has been a popular topic in inventory management. However, whether this technology is superior to the traditionally used systems such as bar-coding system is controversial. In fact, prior empirical studies have revealed that the (observed) successful read rate in real world RFID applications is just in between 60 and 70%. In this paper, motivated by this fact and the observed industrial practice of apparel control in health care organizations, we first conduct an analytical study to reveal when RFID systems will outperform the bar-coding system (and vice versa) in terms of reduction of the amount of required safety stock. We then extend our analysis to a supply chain context which includes the upstream apparel-product supplier and the downstream health care organization. We analytically prove several important insights which include: (i) The ratios between the RFID and bar-coding systems' stock-taking costs and error variations will determine whether one system outperforms the other. (ii) No matter whether the health care organization changes its scanning system from bar-coding to RFID or from RFID to bar-coding, it will only benefit the health care organization but the supplier will suffer. (iii) A carefully designed surplus sharing contract can create a win-win situation under which both the supplier and the health care organization will have improvement (in cost or profit) with the change of the scanning system. Implications are discussed.
URI: http://hdl.handle.net/10397/12482
ISSN: 0167-9236
EISSN: 1873-5797
DOI: 10.1016/j.dss.2012.08.004
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

24
Last Week
0
Last month
1
Citations as of Sep 9, 2017

WEB OF SCIENCETM
Citations

17
Last Week
0
Last month
0
Citations as of Sep 21, 2017

Page view(s)

48
Last Week
2
Last month
Checked on Sep 17, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.