Reengineering, simulation and data analysis of an RFID system

We present a discrete event simulation model reproducing the adoption of Radio Frequency Identification (RFID) technology for the optimal management of common logistics processes of a Fast Moving Consumer Goods (FMCG) warehouse. In this study, simulation is exploited as a powerful tool to replicate both the reengineered RFID logistics processes and the flows of Electronic Product Code (EPC) data generated by such processes. Moreover, a complex tool has been developed to analyze data resulting from the simulation runs, thus addressing the issue of how the flows of EPC data generated by RFID technology can be exploited to provide value-added information for optimally managing the logistics processes. Specifically, an EPCIS compliant Data Warehouse has been designed to act as EPCIS Repository and store EPC data resulting from simulation. Starting from EPC data, properly designed tools, referred to as Business Intelligence Modules, provide value-added information for processes optimization. Due to the newness of RFID adoption in the logistics context and to the lack of real case examples that can be examined, we believe that both the model and the data management system developed can be very useful to understand the practical implications of the technology and related information flow, as well as to show how to leverage EPC data for process management. Results of the study can provide a proof-of-concept to substantiate the adoption of RFID technology in the FMCG industry.