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Inventory Management Method Essay

669 words - 3 pages

Inventory Management Methods
(ii) RFID ( Radio Frequency Identification )
RFID is small tags contain a chip with information. The information on the tag can be updated or changed as necessary which makes it more adaptable than barcode. This technology helps stores or companies to see who is buying their products, how fast and when they need to restock. It uses radio frequencies to transmit data stored on small tags attached to individual products. RFID helps to reduce costs and increase efficiency. Besides that, RFID allows businesses to identify individual products and helps to track the products throughout the supply chain from production to point-of-sale and help companies get the ...view middle of the document...

Lastly, RFID can be used to avoid counterfeit which means electronic label cannot be copied compared to barcode which can be reproduce with a simple photocopy.

Example of company using RFID technology : Wal-Mart Stores
Company that uses RFID technology is Wal-Mart Stores. Wal-Mart is world largest retailer. Products sold at Wal-Mart are food, clothing, accessories, electronics, home decorating items and etc. In order to reduce costs and increase efficiency Wal-Mart implement new technology which is RFID technology to replace barcode technology. They believed that the replacement can reduce its supply chain management costs and enhance efficiency. Wal-Mart use RFID tags to control inventory. RFID tags are read by using handheld readers or RFID interrogators which is a radio frequency transmitters and receivers that read the data from the tags and pass them on to computers that offer a simple and efficient way to maintain a continuous check on inventory. For example Wal-Mart’s use RFID tags as a garment tracker to keep track of individual...

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