What is RFID and its role in SCM?

• A. Radio-frequency identification technology used to track and identify items, improving visibility and accuracy.
• B. Remote financing investment device used for payment processing.
• C. Randomized field data insertion.
• D. Robotic fulfillment index designation.

Answer: (B)

RFID stands for radio-frequency identification. It uses tags attached to items that can be read by scanners via radio waves, often without direct line-of-sight, to capture data automatically. In supply chain management, RFID provides real-time visibility of where items are in the system, improves inventory accuracy, speeds up receiving and picking, reduces errors, and enhances traceability across the flow of goods. The other descriptions describe financing devices, data insertion, or robotics designations, none of which convey automatic identification and tracking like RFID does.