Materials management in Engineer-To-Order (ETO) companies is a key function that significantly contributes to the success of a project and has a great impact on process optimization. The thesis builds on the hypothesis, that better tracking of material flow can be achieved using radio frequency identification (RFID). RFID technology enables the optimization of manufacturing process by eliminating waste and reducing lead-times. Based on existing solutions, we introduce several concepts for tracking material flow in an indoor environment. Based on multi-attribute decision model, the hybrid solution is selected as most appropriate. By analyzing the costs and benefits we discover, that investing in project would have a positive benefit to the company. The use of RFID is expected to improve production efficiency and internal logistics. Improved inventory control and visibility would also reduce material search times and significantly shorten the process of taking the inventory.
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