How does RFID compare to bar coding?
There are several differences between RFID and bar coding. The first difference is that with RFID is that there is no line of sight required but with bar coding the line of sight is required. The second difference is that the RFID is more expensive to use than the bar coding. The third difference is that the RFID takes two steps to do when the bar coding only uses one step. The fourth difference is with RFID, the item orientation is not important but it is required for the bar coding.
What is the economic payback in years for the possible RFID adoption?
The economic payment in years for the possible RFID adopted is based on the annual cost savings divided by the benefits. Therefore, it is 3.22 years.
What are the risks of adopting a new technology too early? Too late?
The main risks that are associated with adopting a new technology too early is that it could result in a loss. This is because if the costs are too high, then the payoff will not be as good as it was expected. There is also a chance that the new technology might not work as well as it expected. The main risks of adopting a new technology too late is that the company could miss some of the market opportunities. Therefore, they could be completely shut out of the market.
What do you recommend Mr. Bracket do in the short and long terms? Explain your reasoning.
Short term – I believe that it would not be a good idea for the company to try to adopt to a new technology. This is because it is going to be too big of a risk for a small company. This is the time that the company needs to think about how the RFID is going to impact the company in the future when the company decides to adopt the RFID process.
Long term – It is a good idea for the company to look at the RFID technology and all of its new developments. Look at how the competitors use the system inside of their company. This is because the bigger companies have the money to test how this technology before they adopt it into the company (Collier, 2009).
References:
Collier, David Alan and Evans, James Robert. (2009). Operations Management. Cengage
Learning: Boston, MA.
