This document describes a case study that applies lean production and radio frequency identification (RFID) technologies to improve the efficiency of a three-tier spare parts supply chain. The supply chain consists of a headquarters, central distribution center, 10 local distribution centers, and repair shops. Value stream mapping was used to analyze the current operations and design an improved future state with lean and RFID. Preliminary experiments found an 81% reduction in total operation time from current to future states, and 89% with cross docking. RFID was also found to significantly reduce labor costs while maintaining service levels. A return-on-investment analysis demonstrated that the proposed approach was both effective and feasible.

Chen, Cheng, Huang - 2013 - Supply Chain Management With Lean Production and RFID Application A Case Study PDF

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