Inventory Systems

Radio-Frequency Identification
Radio-frequency identification (RFID) works by using a microchip or tag and antenna attached to the inventory, which transmits a unique signal to a reader, usually a type of handheld device, when scanned. This signal carries information about the product, such as serial number, stock number, location, destination, and any other useful information the organization chooses to program into it. The collected information relayed to a computer for tracking, counting, or other desired uses. Thanks to (RFID’s), performing a retail inventory no longer requires one to spend hours or in some cases days to count every product, check tallies against a list and perform tedious recounts and reconciliations.

Advantages and Disadvantages

One major advantage is a reduction labor cost because of to the efficiency of the system. Accuracy is also increased, according to Chavis (n.d), “A company with a large warehouse, for example, can scan the contents of the building with a transceiver and, in a short period of time, determine every item that has been tagged and is on premises. This means increased accuracy in inventory practices and precision to determine what is on site and what is not” (Benefits, para 3).

The biggest disadvantage to the RFID inventory system is that there may be areas in an organizations warehouse where weak signal strength may occur. Because the system works on a wireless network there will be the potential for weak signals, and interference from other sources that emit signals. Another disadvantage is the cost to implement this new technology.

      Chavis, J. (n.d.). Advantages of Radio-Frequency Identification. Retrieved from