1. Discuss the benefits and concerns of RFID for companies and consumers.

A warehouse manager must keep track of inventory. In the past, the warehouse manager would hope the items were in the warehouse or on a truck. Today, inventory can be tracked with accuracy using radio frequency identification devices (RFIDs). Through electronic tracking, RFIDs tell the exact location of inventory. This system reduces theft and misplaced inventory.

Two components make up an RFID system. First, the data-loaded tag

(the transponder) is attached to the item to be tracked. These computer chips have small antennas that transmit a unique code to an inventory control system. Second, a reader (the transreceiver) captures the tag’s data using radio waves. This data is then sent to a computer for processing.

Manufacturers are implementing RFID tags on cases and pallets of their products for improved inventory control. Eventually, individual products will also be tagged. Retail stores will use RFID tagging. RFID systems increase efficiency within the supply chain. The ability to replenish shelves faster results in fewer out-of-stock items. It is expected that the tags will ultimately replace the current bar code technology.