Bracket International (BI) seems to be facing the dilemma that all corporations face in today’s technological age; when should the company invest into new technology. The new technology is exchanging the simple bar-code tag on product to a more up to date radio frequency identification device (RFID) system. The question that is most frequently asked is “when is RFID better than Barcodes.” RFID is not necessarily better than Barcodes. The two are different technologies and have different applications, which sometimes overlap. So the question remains, when is it time to upgrade to a more sophisticated inventory control system. Overview
The main points that Mr. Bracket need to reflect upon when making his decision are as follows. * Net Sales have grown to $ 17 million but he currently need to carry a high inventory of $ 14 million to react to customer’s needs. * Bracket International had to deny a $ 2 million a year job order from Wolf Furniture because Bracket had problems adapting quickly to their changing requirements. * Bracket’s largest customer, Home Depot, uses an on-demand point of sale system which causes frequent changes to standing orders to Bracket International. Home Deport has mentioned that BI needs to be more flexible. This could be a signal that Home Depot is looking at other manufacturers. * The cost to outfit all three BI factories would be approximately $1.1 million. This price includes hardware, installation, software, training, and debugging services. Mr. Beckett also will need to take into consideration the ease of use, the ability to train his employees and ability to lower his inventory, which in turn would have a positive affect on the business as a whole. Advantages or Disadvantage
RFID technology enables manufacturers, distributors, and retailers to identify the exact location of their goods at any point in time. And better product visibility will enable the entire supply chain to be more focused on the end customer,...
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