Determining the Benefits of an RFID-Based System for Tracking Pre-Fabricated Components in a Supply Chain

Abstract

Radio Frequency Identification (RFID) technology is an automated identification technology that can be used to track components through construction supply chains. Although there are studies which show that RFID increases labor productivity, detailed assessment of the benefits of RFID technology utilization through a supply chain is limited. In this study, a simulation model is developed to calculate benefits of an RFID investment in a construction supply chain. The simulation model is developed for a pre-fabricated exterior concrete wall panel supply chain and it includes prefabrication and construction phases. The results of the simulation indicate significant reductions in task durations and improvements in the efficiency of the process. Based on the identified benefits, a cost sharing factor for the parties of the supply chain is determined and it is proposed to be used for distributing the investment cost.