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

Abstract

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.