Cost of ownership model for the RFID logistics system applicable to u-city

摘要

Currently, popular areas of radio frequency identification (RFID) application include the domain of ubiquitous city (u-city), which would require very high initial infrastructure cost. This study proposes a cost of ownership (COO) model for RFID logistics system applicable to u-city in order to support the decision making process of infrastructure construction. We apply the proposed model to a case of RFID logistics system by establishing potential scenarios. The expected profit from the construction of RFID logistics system is evaluated for each scenario. We also conduct a sensitivity analysis to consider the effect of various parameter settings. This study is expected to help companies in selecting the most beneficial and most profitable RFID logistics system. (C) 2008 Elsevier B.V. All rights reserved.