RADIO FREQUENCY
OPERATIONS MANAGEMENT
October 12, 2014
What uses do radio frequency identification (RFID) chips have in inventory management for large retailers?
In Schuster et al. (2007) summary, Radio frequency identification chip is a powerful communication technology which uses electromagnetic fields to identify any virtual item. The technology involves inserting a micro-silicon chip to an item where the RFID transceiver can detect that item using Radio frequency waves. Radio frequency identification can be installed in passive tags or active tags, passive tags require no power connections whereas active tags require a power source.
The technology is useful in inventory management for large retailers in a number of ways (as cited by Schuster et al. 2002).
Radio frequency identification technology is used for tracking inventory. Tracking of inventory is very easy especially when dealing with shipments of millions of luggage. Apart from large retailers using this method, Airlines have also begun using this technology. Travelers’ suitcases are attached with either passive or active RFID tag for routine checks and therefore minimizing chances of losing bags.
Inventory control - Traditional methods of stock taking are quickly coming to an end. Large retailers including WalMart use this technology to keep track of their stock. Re-order level is automatically detected by the system, and this reduces chances of out-of-stock therefore saving hours spent for counting inventory. Products are automatically removed from the inventory upon purchase. Suppliers can also be linked to the retailer point of sale and be able to supply immediately when re-order level is reached.
Radio frequency identification ensures proper security of items in the store. Some tags are very tiny to be seen and only can be detected by the receiver. It controls shoplifting in supermarkets or any other forms of theft. If that item is not bought and removed from the inventory, it can be detected by a sensor
October 12, 2014
What uses do radio frequency identification (RFID) chips have in inventory management for large retailers?
In Schuster et al. (2007) summary, Radio frequency identification chip is a powerful communication technology which uses electromagnetic fields to identify any virtual item. The technology involves inserting a micro-silicon chip to an item where the RFID transceiver can detect that item using Radio frequency waves. Radio frequency identification can be installed in passive tags or active tags, passive tags require no power connections whereas active tags require a power source.
The technology is useful in inventory management for large retailers in a number of ways (as cited by Schuster et al. 2002).
Radio frequency identification technology is used for tracking inventory. Tracking of inventory is very easy especially when dealing with shipments of millions of luggage. Apart from large retailers using this method, Airlines have also begun using this technology. Travelers’ suitcases are attached with either passive or active RFID tag for routine checks and therefore minimizing chances of losing bags.
Inventory control - Traditional methods of stock taking are quickly coming to an end. Large retailers including WalMart use this technology to keep track of their stock. Re-order level is automatically detected by the system, and this reduces chances of out-of-stock therefore saving hours spent for counting inventory. Products are automatically removed from the inventory upon purchase. Suppliers can also be linked to the retailer point of sale and be able to supply immediately when re-order level is reached.
Radio frequency identification ensures proper security of items in the store. Some tags are very tiny to be seen and only can be detected by the receiver. It controls shoplifting in supermarkets or any other forms of theft. If that item is not bought and removed from the inventory, it can be detected by a sensor
References: Palmer, M. (2009). Making the most of RFID in libraries. London: Facet. Schuster, E. W., Allen, S. J., & Brock, D. L. (2007). Global RFID the value of the EPCglobal Network for supply chain management. Berlin: Springer. Thornton, F., Das, A. M., Haines, B., Bhargava, H., Campbell, A., & Kleinschmidt, J. (2006). RFID security. Rockland, MA: Syngress. Zelbst, P., & Sower, V. E. (2012). RFID for the supply chain and operations professional. New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press.