Citation
Radio-frequency Identification

Material Information

Title:
Radio-frequency Identification
Creator:
Baid, Mansi
Publication Date:
Language:
English

Subjects

Subjects / Keywords:
Bar codes ( jstor )
Cost estimates ( jstor )
Durability ( jstor )
Labor costs ( jstor )
Patents ( jstor )
Radio frequency identification ( jstor )
Signals ( jstor )
Supply chain management ( jstor )
Transponders ( jstor )
Warehouses ( jstor )
Radio frequency identification systems
Genre:
Undergraduate Honors Thesis

Notes

Abstract:
Radio-Frequency Identification (RFID) is a technology that has the potential of revolutionizing the world by the ability of transmitting a code containing a vast amount of data by radio to a reader. This technology is often portrayed as a simple barcode but in actuality it has much greater possibilities of improving efficiencies and increasing profitability within supply chain management. This little code has the ability to be read at a distance without any manual scanning. This paper introduces all aspects of the technology and the history behind it and then continues to discuss the current implementations of the technology as well as the benefits and hazards that may be caused by the use of the technology. ( en )
General Note:
Awarded Bachelor of Science in Business Administration; Graduated May 7, 2013 cum laude. Major: Finance
General Note:
College/School: Warrington College of Business Administration
General Note:
Legacy honors title: Only abstract available from former Honors Program sponsored database.
General Note:
UF Honors Program sponosored database

Record Information

Source Institution:
University of Florida
Rights Management:
Copyright Mansi Baid. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires perm

Full Text

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Radio-frequency Identification RFID Mansi Baid UFID:

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2 Table of Contents Introduction ............................................................................................................................... 2 History .......................................................................................................................................... 3 Characteristics of RFIDs ......................................................................................................... 7 Security ................................................................................................................................................... 7 Durability .............................................................................................................................................. 7 Size ........................................................................................................................................................... 8 Impact on Supply Chain Industry ....................................................................................... 8 Figure 1. Example of an RFID tag .................................................................................................. 8 Benefits of Implementation ............................................................................................................ 9 An Example: Wal-Mart ................................................................................................................... 10 Related Costs ..................................................................................................................................... 10 Asset Management .......................................................................................................................... 11 Product Recalls ................................................................................................................................ 12 Problems with RFID .............................................................................................................. 13 Technical Problems ........................................................................................................................ 13 Privacy Problems ............................................................................................................................. 15 RFID for Human Implantation .......................................................................................... 16 Benefits to RFID Human Implantation ..................................................................................... 17 Privacy Issues with RFID Human Implementation .............................................................. 18 Conclusion ................................................................................................................................ 18 References ................................................................................................................................ 20 Introduction Radio-frequency identification or more commonly known as RFID has already made

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3 a breakthrough within our technological world but it may be ready for more expansi on RFID is the wireless use of radio-frequency electromagnetic fields to transfer data. They are able to automatically identify and track tags attached to objects. There are many different types of tags, some require no battery and are powered via magnetic fields and read at short ranges and others use a local power source and emit radio waves. Unlike any ordinary barcode, RFID tags do not need to be within a certain line of sight of the reader. Because RFID tags use radio frequencies the tag is able to contain stored information that can be read from a distance of several meters. Today RFIDs are used in almost any industry, from pharmaceuticals to automobiles to agriculture. We will explore the multiple industries that are using this technology and analyze the effects it has had on the industry. History In 1935 Scottish physicist Sir Robert Alexander Watson discovered using the radar. Germans, Japanese, Americans, and British were all using the radar to warn people of approaching planes while they were still miles away but they were unable to identify which planes belonged to the enemy and which were their own planes. The Germans were the first to figure out that if the pilots rolled their planes as they returned to base it would change the radio signal that it reflected back. This was the very first time we were exposed to anything like RFID technology. Meanwhile the British were developing a secret project under Watson, it was called the friend or

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4 foe system. They installed a transmitter on each British plane and when it would receive signals from radar stations on the ground it would send back a signal to identify the aircraft was not dangerous. This is when the idea of RFID was really introduced. The idea behind RFIDs is when a signal is sent to a transponder, which wakes up, and either reflects back a signal or broadcasts a signal and the British were essentially doing just this. Ad vancements with radars and RFID technology continued through the 1950s and 1960s. Scientist in the United States, Europe and Japan continually did research on how RF energy could be used to identify objects remotely. Companies first began using RFIDs when implementing anti-theft systems that used radio waves to determine whether an item had been paid for or not. They were able to do this through electronic article surveillance tags, which are still used today. They are 1 bit tags that are either on or off and are triggered by someone paying for the item. If the person does not pay and tries to walk out of the store, an alarm will sound. In 1973, many people began to patent different types of RFID tags. Mario W. Cardullo received the first U.S patent for an active RFID tag with a rewritable memory but that same year Charles Walton received a patent for a passive transponder used to unlock a door without a key. A passive RFID tag has a certain amount of distance it can cover (a pprox.2040 feet) where as an active RFID tag can a span to a much greater range (300 feet or more). The U.S government also began asked Los Alamos National Laboratory to develop a system for tracking nuclear materials. The scientist came up with the concept of putting a transponder in a truck

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5 and readers at the gates of the secure facilities so the gate antenna would contact the transponder in the truck. The transponder would then be able to send nuclear materials but it was directly applied to automated toll payments. The U.S Agriculture Department also asked Los Alamos to develop a way to track cows. The cows were being given hormones and medicines but not being kept track of to make sure the right dosage was received. Los Alamos came up with a passive RFID system that used radio waves to convey which cows were already given the dosage for the day. As time passed more and more versions of RFIDs were being developed to accomplish patented an ultra-high frequency (UHF) RFID. This UH F offered a longer read range (up to 20 feet) and faster data transfer. IBM began working with Wal-Mart to test their invention but they were never able to fully place their technology in effect because of their financial troubles in the mid-1990s. IBM had to sell their patents to Intermac, a bar code systems provider. Intermac created RFID barcodes for a variety of applications from tracking to farming but the time period was still not right. The Around 1999, four big forces (Uniform Code Council, EAN International, Procter & Gamble and Gillette) created the Auto-ID Center at the Massachusetts Institute of Technology. Professors and students were encouraged to do research on RFIDs.

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6 David Brock and Sanjay Sarma began looking at the possibility of putting low-cost RFID tags on all products made to track them through a supply chain. They wanted to keep things simple and cheap by only putting a serial number on the tag but data associated with the serial number on the tag would be stored in a database which would be accessible over the internet. and improve their supply chain. Tags were originally just a paper that carried information about the product but RFID tags were able to optimize on that and make then into a networking technology, it linked objects to the Internet. This helped businesses become very precise. Manufactures could automatically let a business partner know when shipment was leaving the dock at the manufacturing facility or warehouse and retailers could let manufactures know when the products arrived. As years passed the Auto-ID center continued to grow and by 2003, the center gained the support of more than 100 end-user companies along with the U.S Department of Agriculture. The center expanded internationally to Australia, the United Kingdom, Switzerland, Japan and China where research labs were opened Before closing, Auto-ID Center developed two air interface protocols known as class 1 and class 0, the electronic product code (EPC) numbering scheme and a network architecture for looking up data associated on an RFID tag on the internet. After this came about, the Auto-ID Center closed but research responsibilities were passed o n to the labs that were opened. EPC Global sets the standards for how basic product

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7 information is encoded in the RFID chips. The EPC is a unique identification number that is encoded in a RFID tag. Characteristics of RFIDs Security RFID tags require unique EPC codes which make them almost impossible to copy allowing them to be involved in security applications. Product shrinkage refers to theft that occurs within the supply chain. Product shrinkage cost is estimated to be 50 million Euros a day for European companies. The EPC network allows products to be monitored, alerting supply chain management systems with details in current time when products go missing, allowing organizations to take anti-theft measures in future occurrences. This security can also be provided in retail outlets and distribution centers. Durability The durability of RFID tags is remarkable. Not only are they extremely durable but they can be read through almost any non metallic material. Tags will continue to work in extreme conditions such as the weather being -40 degrees or even 200 degrees centigrade. These tags are also designed to withstand most acids. The durability of these tags makes them ideal for industrial or commercial environments. The actual tags often out lives the item, which it is attached to.

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8 Size The capacity of each tag varies from a few bits to thousands of bits. Tags have the ability to handle a lot; the user must decide how it would like to utilize the tags. The fact that the tags can hold such a vast amount of information is what makes the tags so worthwhile. Another interesting feature of the tag is that the tag can be updated dynamically, storing new information from RFID readers as it moves across the supply chain. Impact on Supply Chain Industry Supply Chain management was created to increase the long-term performance of individual companies and the overall supply chain by maximizing customer value and minimizing cost. All companies go about different methods to insure a successful supply chain. Companies such as Wal-Mart and Dell have gained efficiencies by having a clear understanding and a tight commitment to deliver customer value. They also align their p chains. Information systems are the backbone of every supply chain. It all depends on how data is acquired and what techniques they use to collect the information. Many companies have implemented the RFID technology to enhance their data collection processes along the supply chain. Figure 1. Example of an RFID tag

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9 Benefits of Implementation RFIDs benefit stores in ways that people do not really consider. For example during the rush of any holiday season, many items may be sold out. The consumers will be unsatisfied because the product that they need is out of stock. Another interesting aspect of RFID tags is the fact that it is technically always on which leads too greater visibility to all stakeholders in the supply chain. It is estimated by industry analyst that the U.S retail industry is losing about $70 bullion annually from its supply chain practices and about 42% of this comes from the product not being on the retail shelf when they want it. The visibility aspect of RFIDs could help reduce this loss by reducing waste, lowering inventory levels and improving safety because RFID technology allows products to be followed in real time across the supply chain providing accurate and detailed information on all items. As products move through the process, RFID readers collect information on the products and match their tag numbers to a central database, which provides access to all information regarding the product. Now consider the lines to checkout during the holiday season. biggest complaints about a shopping experience are waiting in lines. RFIDs can revolutionize the way business is conducted. RFIDs can automatically identify people and objects by the 100-digit tag and check them out without the process of waiting for a cashier. RFID technology provides a faster product check out, theft reduction, dynamic pricing of products and tracking employees for labor efficiency. Since RFID tags do not require a certain line of sight a plethora of advantages are created. RFID scanners can communicate to tags in milliseconds and have the ability to scan

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10 multiple items simultaneously. This significantly aids the automation of many tasks, which have typically been labor intensive. An Example: Wal-Mart One of the companies to currently be experimenting with passive RFID tags is WalMart. Wal-Mart hopes that the technology will help stores meet high consumer demand. This auto-ID technology aims to reduce the likelihood of empty shelves by obtaining real-time product information. Some stores have started referring to this technology as smart shelves where there is an inbuilt RFID scanner allowing them to automatically monitor stock. These tags also allow stores to store individual product properties such as expiration dates but this is not yet possible for perishable items that do not have packaging such as apples and bananas. Items with RFID tags have different identification numbers and the RFID reader is able to read products within a 15-foot radius and only takes about a second to retrieve information from the tags. The information is then sent to a database, which provides real-time inventory reports to help stores manage stock and replenish on time. A simple barcode does not come near to providing all the benefits RFIDs are able to provide. Related Costs efficiency and productivity when conducting business on both a national and global scale. The costs of implementing RFID technology in a warehouse are just as high. It has been estimated that an RFID enabled warehouses would cost in excess of $2 million but the technology would be very useful. The warehouse is a very important part of the supply chain. It acts as a buffer to minimize the effects of variability in the

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11 supply chain and serve customers as fast as possible in peak hours of demand. When RFID technology is used in a warehouse, shipments are received automatically and no scanning is necessary when storing the products. Although costs for implementing this technology are high, the labor reduction that will occur may out weigh the costs. The major cost component for a typical distribution center is labor, accounting for around 50-80% of total distribution costs. Some analyst predict that receiving check-in time could be reduced by 60-93% and labor savings of up to 36% in order picking and a 90% reduction in verification costs for shipping processes. These numbers show the importance of labor in supply chains and if there is a way to reduce labor it could lead to huge financial savings. An example of the labor savings involves trash collection. Before the implementation of RFIDs, trucks at landfills had to manually enter their waste details and wait for a ticket but when they began to use RFIDs, drivers merely have to stop on the weighbridge, hold their RFID tag next to the reader and wait a second for their printed ticket. Asset Management

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12 Product Recalls

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13 Problems with RFID Technical Problems

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14

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15 Privacy Problems

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16 RFID for Human Implantation

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17 Benefits to RFID Human Implantation

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18 Privacy Issues with RFID Human Implementation Conclusion

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19

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20 References "Problems With RFID." Technovelgy Technovelgy LLC. Web. 15 Apr 2013. . GARFINKEL, SIMSON. "RFID Privacy: An Overview of Problems and Proposed Solutions." Radio Frequency Identification THE IEEE COMPUTER SOCIETY. Web. 15 Apr 2013. . Mano, Carlos. "Problems in RFID." eHow Tech. N.p., 16 Apr 2012. Web. 15 Apr 2013. .