RFID value in aircraft parts supply chains: A case study

The value of Radio Frequency Identification (RFID) in the maintenance of supply chains of aircraft parts is examined, particularly in the proposed analytical model. This model helps us gain a better understanding of the relationships between various costs incurred and the RFID effect on an aircraft maintenance tracking process. Using an RFID system, a maintenance company specializing in aircraft parts can accumulate savings based on the assumption that the technology can eliminate inaccuracy problems related to inventory recording delays brought about by mishandling in the component repair process. This case study illustrates such phenomenon through the use of numerical assumptions, highlighting the benefits of RFID. Further, the value of RFID in aircraft maintenance is evaluated using sensitivity analysis, in accordance with the parameters of the model of cost reductions in mishandling repair components and inventory control. The findings support the industry's acceptance of RFID technology, proving that this is beneficial to maintenance companies of aircraft parts. (C) 2012 Elsevier B.V. All rights reserved.