A Simulation Model for Enhancing Warehouse Manual Processes in a Paper-Converting Company Using RFID Technology

In recent times, the interest in using radio frequency identification (RFID) technology in supply chain activities has increased due to potential benefits in customer responsiveness and inventory and logistical costs reduction. RFID technology offers tremendous opportunities for those companies trying to reduce cycle times through automation, lower operational risks, improve return on investment, and enhance customer satisfaction and loyalty. Keeping track of inventory within supply chain operations is nearly impossible, but RFID technology is helping some organizations identify and track their assets throughout the manufacturing process. Managing wireless identification and tracking with RFID in warehouses and distribution centers represent a more innovative approach to conduct business, which creates new benefits for competitiveness. Though, it’s very important that users understand RFID capabilities and limitations to accurately assess the impact it can have on their business. This paper will describe the development of a simulation model to represent manual tasks and processes in a paper converting company’s warehouse. Within a warehouse facility, several operations are identified and modeled using a software program. The “as-is” model is used to assess and recommend opportunities for the integration and use of RFID technology that may enhance existing operations to increase the efficiency of the facility. The “to-be” model will be analyzed to determine the value and implementation of using RFID at the facility. Results from the study suggest the facility can benefit from the emerging technology for certain warehouse tasks.