A Novel Approach for Economic-Justification of RFID Technology in Courier Sector: A Real-Life Case Study

Abstract

Radio frequency identification (RFID) applications on the courier sector have been the subject of researches and advantages of them are widely explained. But, still, it is clearly observed that a consistent, accurate and easy to use approach for economic justification of RFID tags is not yet been studied. In this paper we proposed a framework for economic analysis and comparison of alternative scenarios. The proposed framework is based on time-driven activity based costing (TD-ABC) supported by inventory costing and simulation techniques. The proposed framework, can be used for investment analysis and comparisons between potential systems.