Assessment of RFID Investment in the Military Logistics Systems through the Life Cycle Cost (LCC) Model

Ahmet Ozdemir, Mustafa Bayrak


Radio Frequency Identification (RFID) is an emerging technology that has been recently used in numerous business
and public fields. Most military applications of RFID have focused on logistics systems. Since RFID investment requires high
initial cost and its benefits are hard to see in the short term, it needs an appropriate investment decision model. The purpose of
this research is to propose a Life Cycle Cost (LCC) model for RFID integration into the Military Logistics System (MLS). The
study primarily focuses on the question of whether the cost of integrating and operating the MLS with RFID is worth investing.
The results of this study provide a strategic roadmap allowing decision makers to determine if the logistics system considered is
a good candidate for RFID technology integration based on the comparison of the LCCs of the current and the RFID integrated
MLS. This study also enlightens possible cost parameters and their impacts on the total cost of RFID technology implementation
in MLS.

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