RFID/RTLS Application to Remanufacturing Operations in the US Department of Defense

Abstract

The most efficient use of the DoD's network of remanufacturing depots is an important concern because of the extensive requirement to recapitalize the military equipment used in Iraq and Afghanistan through product recovery. In this report, we consider the use of radio frequency identification (RFID) technology in improving remanufacturing efficiency. We first provide a framework for understanding the choice between permanently tagging components with passive RFID versus using RTLS for the temporary identification of components in the remanufacturing process. We then report the results of simulation model that analyzes how RFID/RTLS creates value within the remanufacturing operation. We find that the simulated gains from using RFID/RTLS are quite modest, and propose alternative justifications for the major benefits seen in practice.