Operations Research, Systems Engineering and Industrial Engineering Commons^™

Economic Impact On Annual Profit Of A Retail Inventory Management System When Using Rfid And Considering Discrepancy Ratio, Inaccuracy Ratio, Backorders, And Federal Income Tax, Liyuan Zhang

Department of Industrial and Management Systems Engineering: Dissertations, Theses, and Student Research

Radio Frequency Identification (RFID) emerged as an important technology with the ability to improve the efficiency and accuracy of object tracking. It has brought cost savings and added value to a wide variety of fields. Retail inventory management system is one of the beneficial fields. In order to better satisfy customers and to improve profit, retailers demand high accuracy in inventory management to service customers without redundant on-hand inventories. The RFID technology, which provides more accurate tracking, can improve retailers’ profit.

Two accuracy factors were proposed to determine the difference in the profit of a retailer inventory management system caused …