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Therefore, the tracking of goods by the use of an exceptional serial number makes it easy for employees to calculate and find stocks (Jones, & Chung, 2008).
RFID also enables companies to reduce stock outs from their warehouses, and this helps to maintain customers especially those who run out of patience easily (Ustundag, 2013). This is because companies are able to determine their reorder levels, and at this point, they order new stock. By the time the new stock arrives at the company’s stores, the buffer stock is used to satisfy the available demand.
The technology also helps logistics managers in saving the time that they would use to move from one location to another to check the conditions of their stocks (Ustundag, 2013). This is because RFID does the work of recording and transmitting the condition of goods. If the technology was not there, organizations would have employed people to do this work, and this would consume more time and cost.
The major limitation of RFID in logistics is that it is expensive to acquire and use (Jones, & Chung, 2008). The chips used by this technology and the tags that are attached to goods to enable companies in tracking them are expensive. Therefore, most logistics departments do not afford to use the technology in their companies.
RFID is also complicated and requires to be used only by skilled workers who have the knowledge of the technology (Ustundag, 2013). However, most of the companies employ lowly skilled workers who require less pay than the highly skilled ones. This causes these workers to mishandle RFID leading to low or no achievement of the main objective of the technology. The high expenses associated with the technology also make it possible only for few companies to acquire and use it.
Some companies such as Procter and Gamble argue that the technology is unreliable because it still experiences some errors that would still take
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These factors might have detrimental effects to the industry if not well managed. Therefore, most hospitality companies struggle to cope with these challenges, and sometimes, have gone overboard in their struggle to overcome the challenges. According to Beck, Lazer, and Scmidgall (2007), these factors contribute to the “questionable and unethical management behavior” (p.
However, this process is not as simple as it seems to be. The high variability of demand, increased backlogs and lack of communication (both upstream and downstream) can result into unmanaged supply chain which results in inventory surplus or inventory shortage.
It has transformed the working process of companies. Innovation is a key component for a successful organization and the credit goes to services provided by Information Technology. Information technology has acted as a catalyst for companies to enhance the efficiency level of the workers.
If an organization fails to produce the required product within the allocated manufacturing cost, they may lose the customer as well as suffer from high audit cost, high labor cost and consequently lost sales. A study from (Jones et al. 285-303; Jones et al.
Described as a modern barcode, RFID is a small gadget that can be detected from a distance of few meters. Another benefit is that digital inventory was made possible. It has great impact in the market because its advantages can be acquired with a relatively low price compared to the barcode, thus, there is a decrease in the cost incurred by retailers and manufacturers (RSA Security, 2004a).
determine new opportunities for value-added products and contribute to improve an overall success by devising a new plan with customer oriented service and better buying options in the next summer season.
A random sampling technique will be used to determine percentage of the
The technology uses a semiconductor in a label or tag and when this label or tag is exposed to the correct radio frequency, the stored data gets transmitted (Reigelsperger & Harkins, n.d.).
The radio frequency identification technology is in use for serving several
Alzheimer disease. In addition, the use of Radio Frequency Identification Devices has been extended to business processes whereby certain tags with RFID are used to detect shopping items, and the amount of money
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