1) Do a costbenefit analysis of using RIFD tags at the pallet and at the caselevel for

the METRO Group: list all the problems/costs and benefits/savings of using RFID at
the pallet and caselevel.
As much as possible try to quantify these costs and
benefits (savings) but do not forget to also list the hardertoquantify aspects of the RFID
implementation.
Pallet Level
Specific Change

For

Benefit
Area

Ma
nuf
act
urer
Ma
nuf
act
urer
Ma
nuf
act
urer

labour
Producti
vity

Truck Loading at
Manufacturer

20

Cost
In
Euro
per
Palle
t
0.67

labour
Producti
vity

Automating bar code

scans at WH

0.67

Assu
mptio
ns

labour
Producti
vity

Sending pallets to
truck load area when
truck arrives

25

0.67

Ret
aile
r

labour
Producti
vity

Automating bar code

scans for receving
and storing area

11.2

0.67

cost
of
.17
per
RFID
tag
.5
per
Read
er
usag
e

Ret
aile
r

labour
Producti
vity

2.8

0.67

Ret
aile
r

labour
Producti
vity

Atomating bar code

scans for order
assembly for store
shipments
Truck loading for store
shipments

1.7

0.67

Bene
fit in
Euro

Cost
In
Euro

For

Benefit
Area

Case Level
Specific Change

Bene
fit in
Euro
per
Pallet

Ma
nuf
act
urer
Ret
aile
r
Ret
aile
r
Ret
aile
r
Ret
aile
r
Ret
aile
r
Ret
aile
r
Ret
aile
r
Ret
aile
r

per
Case
7

per
Case
0.67

Product
Availabil
ity

Increased Profit from

Better on shelf status

labour
Producti
vity
labour
Producti
vity
labour
Producti
vity
labour
Producti
vity
Shipme
nt
accurac
y
Product
Availabil
ity
Product
Availabil
ity
Product
Availabil
ity

Elimination of case
counting in receiving
goods
Labor reduction in
picking mixed pallets

0.3

0.67

1.7

0.67

Elimination of sample
checks of mixed
pallets
Reduction of inventory
counts

0.3

0.67

0.1

0.67

Reduction of
mispicked cases

1.5

0.67

Increased Profit from

Better on shelf status

0.67

Increased Profit from

reduced shrink

0.67

Data sharing enabling

product availability

0.67

2) Describe the use of a new technology (other than RFID) in a retail context which you have
experienced or read about. List the benefits of this new technology for the consumer and the retailer.

A South Korean retailer named Homeplus has opened the world's first virtual store geared
to smartphone users, with shoppers scanning barcodes of products displayed in a Seoul
subway station.
Seven pillars and six platform screen doors have been plastered with images of life-size
store shelves filled with goods -- such as milk, apples, a bag of rice or school backpacks -which each carry a small QR code. Shoppers download a related application on their
smartphone and make purchases by taking photos of the QR code.
The order is placed when you scan the QR code in the morning and delivered to
consumers homes by the time they reach home at night.
Advantages to the Consumer

No time spent waiting at the cashiers

Home delivery (No store travel required)
Product Availability
Product Variety

Advantages to the Retailer

-

Better Store Inventory Management

Reduced shrinkage
Low Inventory costs
Product Variety preventing negative effects of substitution