RFID : ROI opportunities after the sunk cost
Author(s)
Simeonov, Teodor D., 1977-
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Alternative title
Radio frequency identification : return on investment opportunities after the sunk cost
Other Contributors
Massachusetts Institute of Technology. Engineering Systems Division.
Advisor
Larry Lapide.
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Currently many alternative options exist to satisfy the RFID mandate by Wal-Mart--tag cases at the exit doors, tag all cases at the supplier's warehouse docks, tag a certain section of the warehouse, etc. The big question is how to prevent Wal-Mart suppliers from treating the cost of EPC standard-adoption from just becoming another one of those nagging costs of doing business with Wal-Mart and how the cost of RFID adoption can be leveraged to differentiate the company's products and service levels from that of the non-RFID-adopting/non-RFID-cost-incurring competition. In addition, it is worth exploring how can all of that translate into long-term comparative advantage for a consumer electronics manufacturer. By examining the different scenarios for a Consumer Electronics Manufacturer (CEM) supplier of Wal-Mart that will be RFID tagging small ticket items on a case level, this study proposes an ROI/ROA framework within which investments in RFID can be evaluated and validates through a simulated financial model that positive value exists for early adopters of RFID technology.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004. Includes bibliographical references (leaf 63).
Date issued
2004Department
Massachusetts Institute of Technology. Engineering Systems DivisionPublisher
Massachusetts Institute of Technology
Keywords
Engineering Systems Division.