A Review of RFID Technology’s Impact on Inventory Management and Supply Chain Optimization
DOI:
https://doi.org/10.63282/3050-922X.IJERET-V6I3P110Keywords:
RFID, Inventory Management, Supply Chain Optimization, Real-Time Tracking, Automation, Barcode Comparison, Warehouse SystemsAbstract
The use of Radio Frequency Identification (RFID) technology is essential to the modernization of supply chain and inventory management systems as it enables precise, automated tracking in real time. This technology makes supply chain networks more transparent from start to finish, improves operational efficiency, and reduces human error through wireless communication between RFID tags and readers. Its capacity to gather and transmit data in real-time helps companies optimize inventory levels, make educated decisions, and increase customer satisfaction. This review explores the key components of RFID, including tags, readers, antennas, and middleware, and highlights their functions in managing inventory and logistics. Applications in real-time tracking, error reduction, warehouse automation, and integration with ERP and IoT systems are examined. The paper also reviews multiple studies comparing RFID with traditional barcoding systems, revealing RFID’s superior performance in cost reduction, accuracy, and user experience. Furthermore, critical issues such as cybersecurity, system complexity, and integration challenges are discussed. The literature collectively demonstrates RFID’s potential to revolutionize supply chains through increased transparency, data-driven decision-making, and process efficiency. The study concludes by outlining current limitations and suggesting directions for future research to enhance RFID adoption and performance in evolving digital supply chains
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