RFID Enabled Supply Chain Management ( SCM )

With the advent of technologies like RFID, it is now possible to track inventory in the real time. In case of RFID enabled Supply Chain the physical inventory and the system inventory is same, while in the traditional supply chain the physical inventory varies from the system inventory due to shrinkage, transaction and misplacement error. We developed a simulation model to study the traditional supply chain which is prevalent in the Indian Market and then compare it with the RFID enabled Supply chain. The overall cost of the supply chain is then calculated for both the types and the inventory profile of the different units are analyzed. The model shows the BullWhip effect and how it’s smoothed via information visibility. The objective is to minimize supply chain costs by trying to maintain inventory at safety stock levels while meeting incoming demand.