Certified Supply Chain Professional (CSCP) Practice Exam

How does radio frequency identification (RFID) function in inventory tracking?

1. By requiring manual entry of product details

2. By using information in a tag on a product to transmit data to a reader

3. By photographing products for records

4. By relying on barcode scanners exclusively

The correct answer is: By using information in a tag on a product to transmit data to a reader

Radio Frequency Identification (RFID) functions in inventory tracking by utilizing a tag attached to a product that contains valuable data. This tag often includes a microchip and antenna, enabling it to transmit information wirelessly to an RFID reader. When the reader comes within range, it can capture the data from the tag without the need for direct line-of-sight, which is a key advantage over traditional barcode systems. This wireless communication allows for faster processing of goods, enhances accuracy in inventory counts, and improves overall tracking efficiency. It eliminates the need for manual data entry, which is time-consuming and prone to human error. By automating this aspect of inventory management, organizations can better manage their stock levels, speed up the supply chain processes, and reduce the likelihood of stockouts or overstock situations. The other options center around manual or less efficient tracking methods. Manual entry can lead to errors and requires significant labor. Photographing products does not facilitate real-time tracking or inventory management. Relying exclusively on barcode scanners limits the efficiency and effectiveness of tracking, as it requires line-of-sight and is slower than RFID technology.