Transcript Radio Frequency Identification (RFID)

Prof. Dr. Majid Hashemipour
Mohammad Hashem Davoodi Semiromi
Pooya Haghani
MENG584 - Advanced Manufacturing Process
Subject: 3.IMPLEMENTATION OF RFID TECHNOLOGY FOR
IMPROVING INVENTORY CONTROL
(Advisor: Vahid Bagherpour)
Radio Frequency Identification (RFID)
Introduction:
Radio Frequency Identification (RFID) continues to evolve as a major
technology for tracking goods and assets around the world. RFID uses
radio waves to identify 'things' automatically and in real time. For the
supply chain and operations it provides increased levels of product and
asset visibility. For example, it can help hospitals track and locate
expensive equipment more quickly to improve patient care. Retailers are
looking at using the technology to automatically receive shipments, and
have greater visibility into the merchandize in the back rooms and on the
store shelves. The United States Food and Drug Administration (FDA) see
RFID as a compelling technology to prevent the introduction of
counterfeit drugs and biologics into the U.S. drug distribution chain.
Radio Frequency Identification Technology:
RFID has a long history. It is only now becoming a major force in the
industry, with associated standards-bodies and technology
advancements. RFID technology was used as far back as World War II to
differentiate between friendly and enemy aircraft. Over the years this
technology has evolved and been applied to animal tracking and
identification, speed pass lanes on toll roads, building security access,
and for electronic payment processing at gas stations.
Enchasing The Supply Chain With RFID.
RFID has captured the attention
of many leading companies
today who are making significant
investments of money and time
to make this technology feasible
in their operations.
Thousands of inbound and
outbound shipments can be
identified with RFID smart labels
that enable unattended
identification, verification and
sortation at different points in
the supply chain across trading
partners and distribution centers.
• Supply Chain:
1-Tracing Operational Improvements with RFID
1-In the Manufacturing plant, pallets arrive at the dock door where stationery readers pick
up EPC numbers and other data about the shipment.
2-Received goods are checked against the Shipping Manifest and will go to one of three
areas—Inventory, Production or Returns.
3-A new shipping smart label is created to ship Returns back to suppliers.
4-Inventory cases are read by a forklift reader that updates the system with product and
location data where they will be stored in the Warehouse.
5-Production components are read at the case level, updating the system that these goods
will be used immediately. Individual components needed to assemble new products are
collected into bins at the start of the Production Line, allowing the manufacturer to link EPC
data of raw materials with the finished products. A smart label is generated to identify the
bin and its contents.
6-As the bins move toward the work-in-process line, they are read into the system by
stationary conveyor-belt readers.
7-As workers assemble components into products, a smart label is attached to the product
at the outset of Work In Process. Strategically positioned reader/encoders write data about
each task that is completed to the read/write tag in the smart label.
8-At Quality Control, a reader picks up EPC numbers of products that have passed
inspection. EPC numbers and product data are recorded in the manufacturer’s database,
providing QC documentation as goods move through the supply chain.
9- Finished goods go to Packaging and a smart label is created that contains specific new
product data.
10-A fork-lift reader is used to update the system with information about the location where finished goods
are stored.
11-Inventory is also stored in the warehouse. As cases are removed from shelves and used in
manufacturing, a hand-held reader or forklift reader can be used to update the system.
12-In the Warehouse, finished goods destined for a particular Distribution Center are collected into pallets.
13-As pallets leave the dock door, stationary readers at Dispatch take take a final reading of the goods and
update the system that they have been loaded on to a truck for shipping out.
14-Advance Shipping Manifests give Distribution Centers data about pallets of good that will arrive. Pallets
are read by
stationary readers that record the shipment and flag duplicate, unordered or suspect items.
15-Forklift readers/encoders update the system with the location of goods that are being stored. At any time,
sensors can record conditions in the DC and add data to the smart label, allowing products to carry their own
pedigree or history.
15-Forklift readers/encoders update the system with the location of goods that are being stored. At any time,
sensors can record conditions in the DC and add data to the smart label , allowing products to carry their own
pedigree or history.
16-At the DC, goods from multiple suppliers are collected on pallets and targeted for a particular Retail
destination. Pallets are shrink-wrapped to protect contents and keep them stable.
17-Stationary readers at the dock doors update the system to reflect what types of goods have been received,
from whom and when. Again, goods that are accepted will be stored in the Backroom or placed directly onto
shelves in-store.
18-Stationary readers or forklift readers update the system as goods transition from the backroom into the
Retail Store.
19-Shelf readers report back into the system when items are low and shelves need restocking.
20-EPC numbers become inactive at the end of the supply chain when containers are recycled in
Compacting, unless assets, such as pallets or cartons, will be reused.
Short range RFID system
Short range RFID system works at a range of
up to 60 cm and monitors separated single
products on convey or belt by hand
scanning.
Medium range RFID system
These systems have a range up to 3.5 m.
Used with sensors around warehouse door.
Long range RFID system
Large numbers of packages can be managed.
Wide area can be covered.
Range from 50 – 100 m.
Very long range RFID system
Range up to 1000m.
Covered large area
High accuracy.
Benefits:
Reduction of misplaced productions
Improve labor productions
Time saving in inventory control
Eliminated paper work and data entry Reduce search time
Usage of RFID in inventory control:
In this article shows how helpful is Radio frequency identify in inventory control.
In today’s business a close cooperation is necessary to decrease the joint total inventory
cost. According to Simchi-Leviet al. several international companies have demonstrated that
integrating the inventory control has improved the company’s performance and market
share.
A simple method to compute economic order quantities (EOQ):
The economic order quantity (EOQ) is one of the most popular and successful optimization
models in inventory control management, due to its simplicity of use, simplicity of concept,
and robustness. The most popular approach to derive the EOQ formulation in operations
management textbooks is to apply differential calculus betaking the first- and second-order
derivatives of the average cost per unit.
EOQ, or Economic Order Quantity, is defined as the
optimal quantity of orders that minimizes total
variable costs required to order and hold inventory.
How EOQ Works
The Total Cost Formula
Total Cost = Purchase Cost + Order Cost + Holding Cost
How EOQ Works
The Total Cost Formula
P = Purchase cost per unit
R = Forecasted monthly usage
How EOQ Works
The Total Cost Formula
P = Purchase cost per unit
R = Forecasted monthly usage
C = Cost per order event (not per unit)
Q = The number of units ordered
How EOQ Works
The Total Cost Formula
P = Purchase cost per unit
R = Forecasted monthly usage
C = Cost per order event (not per unit)
Q = The number of units ordered
F = Holding cost factor
How EOQ Works
The EOQ Formula
Total Cost
Formula
Taking the derivative of both sides of the equation and setting equal to zero
to find the minimum value of the function, one obtains:
How EOQ Works
The EOQ Formula
The result of differentiation
The Economic Order Quantity
Here is the a graphic representation of the EOQ equation.
How we can use RFID technology in EOQ model?
As you see for use economic
order quantities, we should
know the demand rate per
unit of time in other hand we
should know how many units
are left in inventory and then
we can calculate the total
relevant cost per unit of time.
If we use human resource it
will take a lot of time and
budget Whereas With RFID
solution, inventory can be
updated in real time without
product movement, scanning
or human involvement.
References:
• Radio Frequency Identification: An Introduction for Library Professionals. Alan
Butters. Australasian Public Libraries v19.n4(2006) pp.2164–174.
• RFID Poses No Problem for Patron Privacy." "American Libraries" v34 no11 (D 2003)
pg.86.
• Martein Meints (2007), D3.7 A Structured Collection on Information and Literature on
Technological and Usability Aspects of Radio Frequency Identification (RFID), FIDIS
deliverable 3(7), June 2007.