This study explores the application of lean production and RFID
technology for improving the logistics efficiency in a three-tier
spare parts supply chain. This supply chain consists of a head quarter
(HQ), one central distribution center (CDC), 10 local distribution
centers (LDCs), and repair shops (RSs). HQ and CDC are responsible
for supplying spare parts to ten LDC on a daily basis, and these LDC
in turn supply spare parts to more than 400 local RS. HQ has an
Information System (IS) and each CDC, LDC, and RS has a Warehouse
Management System (WMS). There exist space for improvement
in current operations with both information flow and
material flow among the members in the studies supply chain,
and therefore this research adopts lean production and RFID to increase
the effectiveness and efficiency.