Increasing the efficiency of flower inventory management using RFID technology and optimal control

Increasing the efficiency of flower inventory management using RFID technology and optimal control

van Adrichem, Romeo (TU Delft Mechanical, Maritime and Materials Engineering; TU Delft Transport Engineering and Logistics)

Pang, Y. (mentor)
Negenborn, R.R. (graduation committee)
Nicolet, A. (graduation committee)

Delft University of Technology

Mechanical Engineering | Multi-Machine Engineering

2021-12-06

Due to the short shelf-life of flowers (circa 7 days) good inventory management is required to minimize disposals. The trade-off between supplying enough to meet demand yet not too much to prevent expiration is a delicate matter. However, in the current situation uncertainty about inventory levels due to inadequate information and conventional replenishment strategies lead to a situation that does not perform efficiently. This paper demonstrates how an RFID overhead system can be designed that has 98\% reading performance for inventory. Furthermore is showed how this access to better information can already lead to a reduction between 30-50\%, depending on the type of distribution the demand follows. If there are obvious seasonal trends, then the better information in combination with optimal control can have a reduction of 90\% in disposed products with the same availability of products. These reductions are significantly sufficient to conclude that the benefits comfortably break-even with the investments from the inventory system.

RFID
Optimal Control
short shelf-life
inventory management
Efficiency

http://resolver.tudelft.nl/uuid:0e644fb6-f3dc-42c2-ae4c-87df6eeff2a0

Student theses

master thesis

© 2021 Romeo van Adrichem