The costs and benefits of RFID adoption by supply chains have been a matter of much debate. As a result, researchers are finding a greenfield opportunity to examine how organizations might make use of the technology in a supply chain context. This paper attempts to further explore the potential contribution and limitations of RFID in a warehouse setting in two ways. First, it discusses the issues surrounding pallet‐level tagging and case‐level tagging by developing a decision making framework. Second, insights from the framework are used to define an object‐oriented modeling framework that facilitates warehouse simulation of the RFID vs. barcode interoperability. This simulation is used to explore some of the cost/performance tradeoffs associated with six implementation strategies. Important cost tradeoffs are reported for the different strategies, and the statistical significance of the differences are evaluated.
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Ross et al. (2009) studied this question.