Radio Frequency Identification Uses in Inventory Management

By: Jared Farnsworth, LAT

In the fall of two thousand two I was introduced to radio frequency identification or RFID while I was doing my advanced individual training (AIT) for the military in Fort Lee, Virginia. At this time RFID was still in its infancy and not too many people were using RFID at this time. Not really too much was known about the benefits that it provided for inventory management either. The military was in the beginning stages of development and found it useful to link all of the databases at every military installation to make inventory control that much more reliable. Throughout my career in the military I used the RFID system quite a bit, mainly for inventory management. I used it for the control of medical equipment for the Army hospital that I was attached to. Everything had to be documented since all the supplies were highly vital to the proper running of the hospital. Other uses for the RFID system are for loss prevention, tracking inventory replenishment, managing work-in progress, and the removal of production waste through lean management. However certain problems do exist with the RFID system such as misuses and privacy issues. Over the next few paragraphs the benefits and problems with the RFID system will be discussed. “Theft and loss prevention and price markdown management are two of the most promising uses for radio frequency identification technologies deployed at the item level in retail environments, according to a study done at the University of Arkansas” (Unknown, 2008). “Such applications would probably yield benefits for shippers in inventory accuracy and management, reducing out of stocks and moving product information more efficiently through the supply chain” (Unknown, 2008). “RFID adopters start