More Insights Into Rfid-Enabled Changes In Retail: A Simulation Model

As retailers move from pilot studies to rolling out RFID implementations across their stores, they need to adapt their current processes to the capabilities of this new technology. The main objective of this study is to explore areas in retail operations other than the supply chain that can be adapted to the capabilities of enhanced visibility by RFID. We develop a system dynamics simulation model for retailers' floor operations that is based on a Delphi study. Our model explores changes in merchandising processes that improve store operations. More specifically, our simulation model demonstrates how lower inventory holdings and reduced shelf space can result in more variety and assortment of products in stores.