RFID Advantage in Logistics Management for Retail Industry

by

ACKNOWLEDGEMENT

I certify that the work presented in the dissertation is my own unless referenced

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I would like to express my thanks to my advisor, for his suggestions, comments, patience and understanding. Very special thanks to my parents, my father, my mother, my brother and my sister who were continuously supporting me throughout my life and leaving me free in all my decisions. I would also like to thank my colleagues for his technical support whenever I needed. I would like to thank to Department, all the university managers, teachers and students with whom I have worked.

DECLARATION

I declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. I further declare that this work has not previously been presented in whole or part, for any other award, or published in whole or in part elsewhere, including this university. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

Radio Frequency Identification (RFID) is currently of great interest thanks to the initiatives from Wal-Mart and other retailers to require major suppliers to place RFID tags on cases and pallets beginning in 2005. In addition, food safety concerns have generated a greater need for tracking and tracing of products, which may be enabled by RFID. Retail interest in RFID technology is driven by the desire of companies to achieve greater speed and visibility into their supply chains, with the goal of increasing both operational efficiency and store effectiveness. An efficient supply chain operation ensures that goods can be delivered to the place and time when consumers are ready to purchase. Potential gains from the visibility RFID generates include lower inventory levels, reduced labour costs and increased sales. The purpose of this paper is to understand the concept of Radio Frequency Identification (RFID) and its advantage in Logistics Management for Retail Industry.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1Background of the Study1

1.2Tesco PLC Company Profile2

1.3Research Question4

1.4Scope of the Research5

1.5Structure of the thesis6

1.5.1Chapter I: Introduction6

1.5.2Chapter II: Literature Review6

1.5.3Chapter III: Methodology6

1.5.4Chapter IV: Data analysis and Discussion7

1.5.5Chapter V: Conclusion7

1.6Summary of the Chapter7

CHAPTER 2: LITERATURE REVIEW8

2.1Radio Frequency Identification (RFID) Technology9

2.2RFID based Object Localization12

2.2.1Active RFID based Localization system12

2.2.2Passive RFID based Localization system13

2.2.3Hybrid RFID based localization system13

2.3RFID advantages and applications14

2.4Automation: The Ultimate Driver of RFID Growth17

2.5Bar-coding18

2.6Bar-coding vs. RFID19

2.7RFID and Retail21

2.8RFID and Logistics Management23

2.9Summary of the Chapter29

CHAPTER 3: METHODOLOGY30

3.1Case Study32

3.2Philosophical Framework or Paradigm33

3.3Research Design35

3.4Literature Search36

3.5Sample36

3.6Survey Respondents37

3.7Data Analysis37

3.8Rationale for the Proposed Method37

3.9Reliability and Dependability38

3.10Validity38

3.11Credibility39

3.12Ethical Concerns39

3.13Summary of the Chapter40

CHAPTER 4: RESULTS42

4.1Summary of the Chapter48

CHAPTER 5: DISCUSSION50

5.1Economic Aspects of RFID in Business and Cost of Ownership Theory51

5.2Emerging Applications56

5.3Summary of the Chapter58

CHAPTER 6: CONCLUSION60

6.1Suggestions62

6.2Summary of the Chapter63

REFERENCES64

APPENDIX74

Appendix A: List of Figures74

Appendix B: Consent form76

Appendix C: Questionnaire Survey77

Appendix D: Responses to Questionnaire79

Appendix E: List of Charts80

CHAPTER 1: INTRODUCTION

Background of the Study

Industry analysts and media pundits all seem to agree that the use of RFID in global supply chains is rapidly expanding and will continue its growth trajectory over the coming years (Kok, van ...