IFORS 2014, Barcelona, Spain, 13 - 18 July 2013, pp.1
One of the main promises of Radio Frequency Identification Technology (RFID) is reduction in inventory record inaccuracy at retail stores, which in turn will diminish stockouts and result in a more responsive inventory management system. Though reduction of stockouts is widely accepted, the sales increase that could be observed, especially in the long run is not that clear. In this work, we investigate the sales impact of RFID for a retailer that sells seasonal merchandise, such as apparel retailers. We also analyze the risks associated with imperfect RFID performance.