What is RFID technology In what ways can it improve supply chain Essay

What is RFID technology In what ways can it improve tally twine functioning - Essay ExampleThis paper discusses one of the most efficient and trusted method of ensuring inventory efficiency is attained, the use of Radio frequence Identification.The provision chain Radio Frequency Identification, abbreviated as RFID, is a technology used by some retailers and wholesalers to track goods along the tally chain (Millsap para. 4). This method employs the use of concealed RFID tags made by joining radio antennas with microchips. The tags can store up to two kilobytes of information. In the tag memory, information much(prenominal) as the product identification, price of the item, and its manufacture date is stored. The RFID tags are then attached on individual products or the packaging where they are read by a reader collecting information about the product and then transferring it to a computer system.With the use of RFID, companies can increase their efficiency of the global supply ch ain management through the visibility they devices offer on the demand of the products and ordering decision of customers. The RFID tags are effective in decreasing the Bullwhip effects. Since ordering and gross revenue are closely related, companies can make proper decisions through Just in Time (JIT) information received from the tags and can, therefore, decrease effects of inefficient discourse and making improper inventory decisions (Millsap para. 1). Although there have been ethical issues raised in regard to the tags, it is evident that they are very helpful in the supply