An Empirical Investigation of the Potential of RFID Technology to Enhance Supply Chain Agility

This empirical sfudj) examines the potential of RF(D technologj, to increase the business agility and coordinatiolz of inventory supply chain sp-terns The bullwhipeffct is a logistics nzanagernentphe17omer~on i supp l~ chain systems that is characterized by a lack of business agility This studj. exarnules the potential of radiofrequency icientijication (RFID) technology to increase the business agiliv and coordination of inventor), supplj) chai~l sjxtenl.c, greatly reducing the bullwhip efect throt~gll timeb inforn~ationprovided througho~~t the supply chain. An e,rperinlent ofone group o f15 teains using a sitnulated RFID-enabled supply cham system conlpared nzean team costs iiith those of a control group of 15 teams, providing empirical evidence that RFIDtechnology can increase a supply chain 's business agilig,, as tnan~$ested bj. a reduction in inventory holdmg and stockout costs.