This study investigates how imperfect inventory information provided by Radio Frequency Identification (RFID) technology can be used in inventory management. A simulation-based approach is utilised to understand the potential uses and impacts of imperfect RFID data in multi-echelon retail supply chains. The results reveal that when used as the primary decision-making tool, RFID could be a valuable technology even without perfect visibility. However, unforeseen trends and system behaviours are observed on the level of inventory record inaccuracy. When RFID is used to monitor the inventory as a supporting technology, the information provided can be used to trigger inventory correction activities.
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Buyurgan et al. (2010) studied this question.
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