RFID at Metro Case
Case questions are in this document.
Recommend you download your copy and complete your questions within this document template.
All groups (expect the group making the presentation) are required to submit a printout of their answers to the instructor at the beginning of the class. Also, be prepared to discuss the case in the class.
Due Date: March 6
1. List any three advantages of RFID over bar-code scanning?
RFID is automatic
RFID can be done in mass, large scale vs. item scanning of barcode
RFID has additional information (e.g. brand, size, color)
2. One of the important decisions that companies make in RFID is what level should the tagging be done. Tagging can be done at the pallet level or at the case level or even at the individual product level (see figure below for the difference between pallets and cases)[1]. Metro Group (which is the retailer) is debating whether to implement the tags at the pallet level or the case level. Perform a cost benefit analysis to make your recommendation to the company. Each pallet has 70 cases and every week, a single retail store processes 30 pallets. Assume that Metro Group has 436 stores. Each RFID tag costs 17 €-cents.
Benefit-Calculation:
Case Level = $81,435
Pallet Level= $2,053.56
Cost-Calculation
Case Level= $155,550
Pallet Level= $2,223.60
3. What were the challenges faced by Metro during the RFID rollout?
High initial investment
Connection problems
Changed processes inside plants
Read errors due to incorrect tagging and reading
Need for IT system changes
Lack of collaboration with suppliers
4. Look at Metro DC’s process flow in Exhibit 8. List 3 ways in which the retailer can benefit from using RFID.
RFID tags are more efficient and can save labor time and reduce errors in data entry
2. RFID tags do not need to be manually scanned like barcode each time.
3. RFID tags can help with loss prevention and theft, Using RFID tags has shown to reduce overall shrink for retailers.
5. What IT infrastructure would Metro Group need to put in place for adopting RFID?
-Tags
-IT System that can:
Track the ID’s
Process Data
Integrate with other systems- ERP system, Warehouse system, Inventory system
-Hardware costs
Cables, Connections
Serves to hold data
Readers, scanners, portals (e.g. forklift moving through)
Total #: #entrances # stores