This study illustrates the application of lean management and Radio Frequency Identification (RFID) technology to improve the logistics efficiency in a distribution center. The distribution center stores more than ten million parts belonging to about ten thousand types. There are more than ten thousand storage and retrieval operations for hundreds of part types on a daily basis. Value stream mapping was used to draw current state mapping with material flow, information flow, and time flow. Based on the concept of business process reengineering, future state mapping with RFID application was developed. Preliminary experiments showed that 100% read rate was achieved with a fixed RFID reader and an antenna installed at a garage door and Ultra-High Frequency passive tags mounted on each pallet. The benefit using RFID in the distribution center is analyzed (e.g., with a saving of cycle time and process time by 24% and 22%, respectively) and promoted.
This study presented the application of Radio Frequency Identification (RFID) technology to improve the efficiency and effectiveness of warehouse management. Fixed RFID readers and antenna were installed at the receiving/shipping dock and passive tags were mounted on either storage box or pallet. RFID system can quickly and simultaneously read multiply tags, compared to the sequential reading of barcodes by handy barcode scanner in manual operations due to the inconsistency in box sizes and the locations of barcode for items of various types. Significant improvements were observed in preliminary experiments. The numbers of pallets and items processed by each operator per day were increased by 425% and 438%, respectively. The data processing time at receiving and shipping docks was reduced by more than 90%. With RFID technology, the number of operators can be reduced while maintaining current service capacity at the studied warehouse. The benefit using RFID in the warehouse management is analyzed and promoted.
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