Fleisch and Tellkamp  reported that shrinkage accounted for 2%–4% of sales in the US retail industry in 2001. Atali et al.  distinguish in their paper between three main sources of inventory discrepancies which are not taken into account in the classical inventory models: (1) Shrinkage, (2) Misplacement of products, and (3) Transaction errors. Lee and Ozer  reported that between 10% and 66% of the original shrinkage observed is reduced after implementing Radio Frequency Identification (RFID) technologies. De Kok et al.  have developed a mathematical model for comparing the situation with RFID and the one without RFID in terms of costs. Using their model it was possible for them to obtain an exact analytical expression for deriving break-even prices of an RFID tag. It turned out that those break-even prices were highly related with the value of the items that was lost, the shrinkage fraction and the remaining shrinkage after implementing RFID. These same authors proposed a simple rough-cut approximation to determine the maximum amount of money a manager should be willing to invest in RFID technology.
All these point to this reality that an increasing demands for security and safety, for our food, health, medication, and tracing and tracking transporting goods, are out there. These are the needs of every people of every society and the companies that produce goods and those that transmit them to their customers and those that use them as the final consumers. In this same line of taught, there is a need for complete documentations of food products, from field to customer as was highlighted by Thysen .
RFID is a method for sending and receiving data without any contacts occurs between the interrogators and tags using electromagnetic waves . RFID tags can hold more information than data carrier systems such as barcode system. An RFID system is comprised of tags, a reader that can read data from the tag, antenna and the hardware and software.
For full text: click here
(Author: Yahia Zare Mehrjerdi