Increasing the efficiency of flower inventory management using RFID technology and optimal control
R.C. van Adrichem (TU Delft - Mechanical Engineering)
Yusong Pang – Mentor (TU Delft - Transport Engineering and Logistics)
R Negenborn – Graduation committee member (TU Delft - Transport Engineering and Logistics)
A. Nicolet – Graduation committee member (TU Delft - Transport Engineering and Logistics)
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Abstract
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.