LPD3806 OPTICAL ROTARY ENCODER
It has the specification with 100,200,300,360,400,500,600,1000,2000P/R
Wiring: Green = A phase White= B phase
Red = Vcc positive power supply Black = Vo (Ground)
Another metal shielding layer interference.
Output:
AB two-phase quadratureoutput rectangular pulse,the circuit output is NPNopen c type
This type can be output with internal pull-up resistor available in Arduino,microcon such as Atmega,pic,51 or microcontroller Mitsubishi PLC.
If Internal Pullup is not available,then you need to Pull-up Output ChannelA&Bwi supplied with product.i.e.resister between Green and RED, White and RED wire.
Audited Supplier 
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