Supply Chain Management

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Passive RFID Tags

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Supply Chain Management

Definition

Passive RFID tags are small devices that use radio frequency identification technology to transmit data when activated by a nearby RFID reader. Unlike active tags, they do not have a battery and rely on the energy from the reader's radio waves to power their signal, making them cost-effective and ideal for tracking items in a supply chain.

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5 Must Know Facts For Your Next Test

  1. Passive RFID tags are typically cheaper than active tags, making them widely used in various industries for inventory management and tracking.
  2. These tags have a limited read range, usually up to 10 meters, depending on the frequency used and the reader's power.
  3. They can be embedded in various materials, including packaging, allowing seamless integration into existing processes without altering physical handling.
  4. Passive RFID tags can store a limited amount of data, generally just an ID number, which can link to more information stored in a database.
  5. The use of passive RFID tags enhances supply chain visibility by enabling real-time tracking of products as they move through different stages of the supply chain.

Review Questions

  • How do passive RFID tags function in the context of supply chain visibility?
    • Passive RFID tags function by reflecting signals from an RFID reader, which activates the tag using energy from the reader's radio waves. This interaction allows for automatic identification and tracking of items throughout the supply chain. Their ability to provide real-time data on inventory levels and location helps businesses maintain better visibility and control over their operations.
  • Compare passive RFID tags with active RFID tags regarding their functionality and applications in supply chain management.
    • Passive RFID tags operate without a battery and rely on external energy from a reader to transmit data, making them less expensive but limiting their range. In contrast, active RFID tags have a built-in battery that allows for greater transmission distances and larger data storage. In supply chain management, passive tags are often used for tracking inventory at lower costs, while active tags may be used for high-value assets that require constant monitoring over longer distances.
  • Evaluate the impact of passive RFID technology on efficiency within supply chains and discuss potential challenges in its implementation.
    • The implementation of passive RFID technology significantly improves efficiency in supply chains by automating data capture processes and reducing manual errors. This leads to quicker inventory counts and better stock accuracy. However, challenges include the initial investment in infrastructure, potential interference from environmental factors like metal or liquid that can disrupt signals, and ensuring staff training for effective use. Addressing these challenges is essential for maximizing the benefits of passive RFID technology in optimizing supply chain operations.

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