Drivers of RFID adoption in the automotive industry

The automotive industry is confronted with increasing competition, leading to higher cost pressures and the demand to optimize production processes and value chains. Here the RFID technology promises to improve a range of processes in logistics and manufacturing. Despite its promising potential in the automotive industry, RFID has not yet made a decisive step from pilots to real-life implementations in the supply chain. Building on existing models of technology adoption, we analyze RFID adoption dynamics in the automotive industry. Building on existing IOS adoption models tailored to RFID specifics and based on ten semi-structured interviews with OEMs and suppliers, we evaluate main drivers of RFID adoption in the automotive industry. Our key findings are that the use of a coercive approach by the OEM could be redundant because of the market-driven RFID adoption among many suppliers. Furthermore, suppliers implementing RFID can now gain an early mover competitive advantage by developing higher trust in their relationship with the OEM as well as accumulating unique expertise in this area.

Perceived usefulness of RFID-enabled information services – a systematic approach

Even though RFID technology is currently gaining importance mainly in logistics, usage areas, such as shopping or after-sales enhancements beyond the supply chain are envisioned. Yet, while RFID hits the street it is questioned if it may undermine one’s privacy while providing few customer benefits. Meeting this criticism this paper investigates RFID-enabled information services and the drivers of their usefulness for consumers. The article claims that the more risk one associates with a product the more benefit from RFID-enabled information services is perceived. We show empirically that the nature of product risk provides a useful framework to decide on the types of RFID information services a marketer should offer to create RFID usefulness perceptions and increase technology acceptance.

Advanced production scheduling for batch plants in process industries

An Advanced Planning System (APS) offers support at all planning levels along the supply chain while observing limited resources. We consider an APS for process industries (e.g. chemical and pharmaceutical industries) consisting of the modules network design (for long–term decisions), supply network planning (for medium–term decisions), and detailed production scheduling (for short–term decisions). For each module, we outline the decision problem, discuss the specifi cs of process industries, and review state–of–the–art solution approaches. For the module detailed production scheduling, a new solution approach is proposed in the case of batch production, which can solve much larger practical problems than the methods known thus far. The new approach decomposes detailed production scheduling for batch production into batching and batch scheduling. The batching problem converts the primary requirements for products into individual batches, where the work load is to be minimized. We formulate the batching problem as a nonlinear mixed–integer program and transform it into a linear mixed–binary program of moderate size, which can be solved by standard software. The batch scheduling problem allocates the batches to scarce resources such as processing units, workers, and intermediate storage facilities, where some regular objective function like the makespan is to be minimized. The batch scheduling problem is modelled as a resource–constrained project scheduling problem, which can be solved by an efficient truncated branch–and–bound algorithm developed recently. The performance of the new solution procedures for batching and batch scheduling is demonstrated by solving several instances of a case study from process industries.