The Effects of Rfid on Businesses and Customers for Inventory Purposes

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  • Topic: RFID, Radio-frequency identification, Privacy
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The Effects of RFID on Businesses and Customers for Inventory Purposes By Charity Perkins
November 3, 2011
CS300T Professor Rekha Gupta

Table of Contents
Introduction and Research Question 1
Barcode Scanning vs. RFID 3
Cost of Implementing RFID 3
Job Security with RFID Implementation 4
Benefits of RFID for Consumers and Businesses 5
Disadvantages of RFID for Consumers and Business 7
Conclusion 8
Works Cited

Introduction and Research Question
Inefficiency, inaccuracy, and the amount of time needed to manage inventory without innovation, has spurred the need for better technology as well as a faster system. The ability to become more efficient and accurate has been a first and foremost on most industry leader’s minds. Currently with the way that inventory is managed consist of manual data entry, long physical inventory times and a large staff. On top of this traditional way being a lengthy process you have to also consider the drawbacks of having limited mobility and human errors when large amounts of data being keyed in. This brings us to what may be the solution to this problem, a technology known as RFID or Radio Frequency Identification Devices. Radio Frequency Identification devices or further known throughout this paper RFID were first developed in 1945 by a Russian named Léon Theremin who was a Russian spy. This makes perfect sense that Theremin used his first RFID type devices a Russian spy tool, though his first RFID devices also included audio and were used for ease dropping as well as tracking. Since then RFID has stuck around and been developed for much milder uses. Basically what RFID is, “is a technology that uses radio waves to transfer data from an electronic tag, called RFID tag or label, attached to an object, through a reader for the purpose of identifying and tracking the object” (Wiki). An RFID system that would be used for inventory purposes would consist of a tag made up of a microchip with an antennae, an interrogator reader with an antenna. The reader sends out electromagnetic waves. The tag antenna is tuned to receive these waves. “A passive RFID tag draws power by the field created by the reader and uses it to power the microchip’s circuits. The chip then modulates the waves that the tag sends back to the reader, which converts the new waves into digital data” (RFID Journal). The focus of this paper is the use of RFID in conjunction with inventory management purposes. In the beginning there were only people paper and possibly calculators to take on this massive but very important project. With these methods a lot of time and mistakes were made. These inconveniences caused the need for a faster better method and with technology on the rise in the workplace a method was found, enter the barcode or UPC scanning. The barcode patent was registered on October 7, 1952 (Barcode Wiki). The barcode was created to assist a retail grocery market in identifying products that were being checked out of the store. When the item was scanned, the product was identified and inventory was updated to reflect that the item had been purchased and was no longer available for sale. The ability to scan and recognize a product increases the knowledge and efficiency of understanding on hand inventory accurately. This knowledge helps to eliminate inventory shortages and surplus of in stock items. This helps businesses such as grocery stores be more efficient in always having enough to satisfy the demand of their customers while also being able to not be wasteful when dealing with food that may have a set shelf life or expiration date. The use of barcode scanning technology also has had a direct effect on efficiency of staff, therefore allowing the ability of the same staff to manage goods and customer service more rapidly and accurately. “Scanning capability literally cut the receiving process time in half, freeing up more personnel time, because the receiving and...
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