RFID-enabled inventory routing problems

Abstract

In this paper, we provide a methodology for dynamic control of Radio Frequency Identification- (RFID-) enabled Inventory Routing Problems (IRP), where a set of locations is served by a single distribution centre using a Vendor-Managed Inventory (VMI) approach. In this scenario, RFID technology enables efficient control of inventory distribution by exchanging real-time information upon arrival to each location. This paper develops mathematical models that illustrate the substantial potential savings associated with the implementation of this technology, and provides a discussion of practical impediments to full application. Copyright © 2007 Inderscience Enterprises Ltd.