The bar code is an important tool for inventory managers. It uniquely identifies

Question

The bar code is an important tool for inventory managers. It uniquely identifies an inventory item, making cycle counting, work-in-process inventory management and sales inventory management more efficient. Bar codes will be replaced by a new way of identifying items: Radio Frequency Identification (RFID). Do some exploratory research of RFID on the Internet and then use your knowledge to state your opinion on the question shown in the discussion topic's title. Many business groups have stated that there is no need for privacy regulations in the area of RFID. Do you agree? Why or why not? RFID devices are microchips with antennas embedded in items (finished products and also sub-assemblies) that transmit information about the item. A scanner can pick up this information from as far as 750 centimeters or 25 feet away. These devices do not disable themselves after the item leaves the factory or even the outlet where it was purchased.

Explanation / Answer

I disagree with the fact that there is no need for privacy regulations in the area of RFID. RFID transmits information from long distances, and are not disabled even when they leave the factory. This obviously has tremendous benefits for the company, when inventory or material and product tracking are concerned, as RFID technology can help the company track, where the raw material is, right from the suppliers door step to the company premises, then where is that raw material sitting in the company, in form of raw material, WIP or finished good, helping the company track its inventory. And finally, when the company ships the product, it can be tracked till it reaches the retail stores, even on the retail shelf. Hence the company gets to know if there is some problem in transit, and can hence resolve it fast.

But the problem arises when the product leaves the retail store with the customer. The customer whereabouts can be tracked by the company. This can tell the company about the customer’s buying preferences, and other important customer information, for formulating customer profile for future sales. But it is a intrusion in the customer’s privacy, as someone else having a full time critical information about an individual, for instance the person’s location information, etc, can even pose security threats. RFID tags transmit knowledge about the customer’s whereabouts even without the customer having the knowledge about that. In extreme cases, RFID tags with unique serial or identification numbers can even be linked to a customer’s personal and confidential information, like her credit card number.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.