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Supply Chain Management technologies: RFID and XML. RFID: Radio Frequency Identification. Reader (transmitter/receiver) Tags that respond to a radio frequency Transmits unique Identifier 8-12 bytes (characters) at different frequency Does not have to be line-of-sight - PowerPoint PPT Presentation
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Supply Chain Management technologies: RFID and XML
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 2
RFID: Radio Frequency Identification
Reader (transmitter/receiver)
Tags that respond to a radio frequencyTransmits unique Identifier 8-12 bytes
(characters) at different frequencyDoes not have to be line-of-sight
Lots of Applications Software
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 3
Applications
Check out: POS terminal
Inventory tracking (Wal-Mart, DoD)
Animal tagging
Secure car key (Toyota)
Purchase gasoline (Mobil)
Doorway access control
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 4
Passive vs. active tagsPassive tagsUses transmitter RF signal for powerLong lifespanCosts start at about twenty cents Low frequency: range is less than 6 inchesHigh frequency: range up to 12 inchesUltrahigh frequency: several yards
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 5
Active tags
Active tag
Uses a battery to respond
More range, up to 1Km
3-5 year battery life
Can cost several dollars
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 6
RFID quiz
Q 1: What kind of tags are we using in lab?
Q 2: Does the orientation of the tag affect the ability to read its contents? (try all of the tags)
Q 3: Does placing a tag in a metal can affect the ability to read its contents?
Q 4: Why is the flat tag Read/Write?
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 7
RFID advantages
Less human intervention
Real-time information flow as item changes state: Off truck Off shelf Purchased by customer
Reduce lost or stolen inventory
Machine-to-machine communication Package routing
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 8
RFID challenges
Interference with object or other readers
Range
Data formats and standardizationDifferent countries allocate different
frequencies
Cost for readers, tags and system
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 9
Bar Code vs. RFID scanning
Line of sight
Right-side-up (must physically align carton)
Can tear
Limited amount of data
No encryption
Can read through objects
Tag orientation less of a problem
Can store megabytes of data, if needed
Can be encrypted
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 10
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 11
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 12
UPC versus EPCUniversal Product Code
For Bar coding
Contains MFR ID number (5 digits) and Item Number (5 digits)
Electronic Product Code for RFID apps.
Contains 96 bits: EPC manager ID (MFR) Object class Serial number
Can track a particular case of toothpaste !
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 13
RFID supply chain integration
Supplier:
Store EPC & pallet contents on DB
EPC has supplier-ID and database key.
Ship pallet with tag
Buyer /shipper:
Pallet arrives
automatically scanned for EPC
Get contents from Supplier DB
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 14
RFID futureRFID tag as a sensor Temperature: spoilage Package opened: drugs
Larger memory: Car repair history Medical history
Can we recycle RFID tags? Chip-kill technology
Privacy: track movement of people (ID card, E-ZPASS) or post-sale disposition of items.
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 15
Supply Chain Management (SCM)
Definition:
A cross-functional inter-enterprise system that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 16
SCM Life Cycle
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 17
Electronic Data Interchange (EDI)
Definition:Involves the electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partnersStandard industry format to send RFQ, PO, Receiving notice, payment notice, Invoice, Payment remittance notice, etc.Now being replaced by Web and XML.
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 18
EDI Activities
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 19
SCM Planning FunctionsSupply Chain Design – optimize network of suppliers, plants, and distribution centers
Forecasting customer demand by sharing demand and supply forecasts instantaneously across suppliers and distributors
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 20
SCM Execution FunctionsMaterials Management – share accurate inventory and procurement order information, ensure materials required for production are available in the right place at the right time.
Collaborative Manufacturing – optimize plans and schedules while considering resource, material, and dependency constraints
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 21
SCM Execution FunctionsCollaborative Fulfillment –order management, vehicle scheduling, and support the entire logistics process, including picking, packing, shipping, and delivery in foreign countries
Supply Chain Event Management – monitor every stage of the supply chain process, from price quotation to the moment the customer receives the product, and receive alerts when problems arise – visibility!
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 22
Business Value of SCMBenefits of SCM:
Reduces production and distribution costs More information => less inventory, less lead times needed
Improves timeliness of shipments Increases supply chain “velocity”More accurate fulfillment Improves “visibility” of supply chain
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 23
SCM BenefitsFewer employees needed to manage supply chainBetter customer satisfaction: less stock-outsStrategic relationship with suppliers, enables new business partnerships: Collaborative Planning, Forecasting, and
Replenishment systems (CPFR).Collaborative downstream customer
service, marketing, and relationship management.
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 24
Technical Challenges of SCM
Acquisition of secure extranet
Software can be confusing, contradictory and not sculpted to their needs – difficult to implement.
Emerging standards, high costs.
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 25
Organizational challenges
Changes company structure: resistance from employees wedded to traditional processes, leads to lack of adequate collaboration among marketing, production, and inventory management departments within a company
Supplier reluctance or incompatibility issues.
Lack of proper demand planning knowledge: leading to inaccurate or overoptimistic demand forecasts. Need new tools and guidelines.
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 26
Fun with XML
Standard way to describe structured data within an organization or across the Web (metadata included in file).
Can check validity using a set of rules in a schema definition (xsd) file, using a validating XML parser.
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 27
XML rules
Each element tag is user-defined, within angle brackets:
<purchaseOrder> … </purchaseOrder>
Each element can have sub-parts:<Address>
<street> 515 Loudon Rd. </street> <city> Loudonville </city>
</Address>
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 28
XML Schema definition file
Rules besides “well-formed” XML:Order of elements
<xsd:sequence> … </sequence>Data type: string, date or decimal
<xsd:element name=“zip” type=“xsd:decimal” />Optional elements:
minOccurs=“0”
Principles of Information Systems, Fifth Edition
Chapter 2 Slide 29
On Your Own
Coors Case worksheet
XML exercise
Online quiz
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