Radio-frequency identification (RFID) technology is one of the encouraging technologies to improve the productivity in warehouse management. However, the problem of how to explore the potential benefits of a RFID system and reduce the expenditure of RFID application are troubling many managers who are planning to, or have engaged in, the implementation. This paper enriches existing theory by introducing the useful and comprehensive warehouse management optimisation methods based on dynamic SKU (storage keeping unit) management in the design and development of a RFID-enabled warehouse. Based on the dynamic SKU management method proposed, cost optimisation methods are employed in the development of RFID-enabled warehouse. Furthermore, a storage area management optimisation for multi-size coils and a crane scheduling optimisation method is established for the purpose of enhancing the productivity of the warehouse. The optimisation methods are applied and verified in a coil warehouse and the result shows that the hardware investment is cut down by reducing the number of RFID cards used without any decrease in location accuracy and the warehouse productivity is improved significantly.

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