On the impact of RFID and EPC on traceability management: a mathematical model

This paper introduces a detailed mathematical model to assess the economic impact of radio frequency identification (RFID) technology and EPC Network adoption for traceability management within a supply chain. The model computes the savings resulting from RFID implementation, grounding on the gap between the costs of product recalling performed without and with the support of RFID-based traceability systems. These situations are respectively referred to as ‘AS IS’ and ‘TO BE’ scenarios. Both scenarios were validated by a panel of experts, operating as manufacturers and distributors of food products, to ensure a good correspondence with real traceability management procedures. A numerical example is proposed to show the model application, as well as to provide some insights about the economic impact of RFID and EPC Network implementation for traceability management.