Sensor applications in the supply chain: the example of quality-based issuing of perishables

Authors:
Ali Dada;Frédéric Thiesse
Affiliations:
Institute of Technology Management, University of St. Gallen, St. Gallen, Switzerland and SAP Research CEC St Gallen, St. Gallen, Switzerland;Institute of Technology Management, University of St. Gallen, St. Gallen, Switzerland
Venue:
IOT'08 Proceedings of the 1st international conference on The internet of things
Year:
2008

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Abstract

Miniaturization and price decline are increasingly allowing for the use of RFID tags and sensors in inter-organizational supply chain applications. This contribution aims at investigating the potential of sensor-based issuing policies on product quality in the perishables supply chain. We develop a simple simulation model that allows us to study the quality of perishable goods at a retailer under different issuing policies at the distributor. Our results show that policies that rely on automatically collected expiry dates and product quality bear the potential to improve the quality of items in stores with regard to mean quality and standard deviation.