The costs and benefits of RFID adoption by supply chains have been a matter of much debate. As a result, researchers are finding a greenfield opportunity to examine how organizations might make use of the technology in a supply chain context. This paper attempts to further explore the potential contribution and limitations of RFID in a warehouse setting in two ways. First, it discusses the issues surrounding pallet-level tagging and case-level tagging by developing a decision making framework. Second, insights from the framework are used to define an object-oriented modeling framework that facilitates warehouse simulation of the RFID vs. barcode interoperability. This simulation is used to explore some of the cost/performance tradeoffs associated with six implementation strategies. Important cost tradeoffs are reported for the different strategies, and the statistical significance of the differences are evaluated.