RFID Technology Applications and Benefits

This assignment delves into the applications and advantages of Radio Frequency Identification (RFID) technology across diverse sectors such as banking, retail, and supply chain. It highlights how RFID surpasses traditional barcode and QR code systems in enhancing inventory management, tracking assets, and improving operational efficiency. The report discusses real-world examples of RFID implementation and analyzes its impact on industries like aviation and libraries. While acknowledging the limitations of RFID, such as high costs and security concerns, the assignment ultimately presents a compelling case for the transformative potential of this technology.

Running head: RADIO FREQUENCY IDENTIFICATION
Radio Frequency Identification
Name of the Student
Name of the University
Author’s name

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RADIO FREQUENCY IDENTIFICATION
Table of Contents
1. Introduction......................................................................................................................2
2. Working Mechanism of RFID.........................................................................................2
2.1 Types of RFID...........................................................................................................3
2.2 Applications of RFID................................................................................................3
3. Technical and Business Problems solved by RFID.........................................................4
3.1 Comparison between Barcode and RFID..................................................................4
3.2 Comparison between QR code and RFID.................................................................5
4. Limitations of RFID........................................................................................................6
5. Use of RFID in Walmart..................................................................................................6
6. Use of RFID in Market Place..........................................................................................7
6.1 Banking......................................................................................................................7
6.2 Retail..........................................................................................................................7
6.3 SCM...........................................................................................................................7
6.4 Aerospace National Library.......................................................................................7
7. Conclusion.......................................................................................................................8
8. References........................................................................................................................9

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RADIO FREQUENCY IDENTIFICATION
1. Introduction
RFID is an electronic device that is small in size. It contains a mini chip along with an
antenna. It makes the use of electromagnetic field and radio frequency for automatically
identifying and tracking tags that are attached to the objects (Rajaraman, 2017). This report gives
an overview about the RFID technology. It discusses about the use, working mechanism, types
and limitations of RFID technology.
2. Working Mechanism of RFID
RFID makes use of radio frequency and waves for reading, capturing and interacting with
the information that is stored on the tags of the objects (Hutter & Schmidt, 2013). The two main
components of RFID are the reader and the tag.
Tag: The tag of RFID consists of a receiver as well as a transmitter. The tag consists of
an antenna for receiving and transmitting signals. It also consists of an integrated circuit for the
purpose of storing as well as processing information. The non-volatile memory of the tag can
either have programmable or fixed logic for the purpose of transmitting data.
Reader: This consists of a two-way transceiver. It is also known as interrogator because it
sends an encoded signal for interrogating the tag. Radio signal then activates the tags. The
transponder of the tags converts radio signals into power for responding to the readers.

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RADIO FREQUENCY IDENTIFICATION
Figure 1: Simplified RFID System
(Source: Created by author)
2.1 Types of RFID
Active RFID: This type of RFID consists of internal source of power. It is dependent on
the battery. The power supplied by the battery can be used for generating signal on antenna and
also to power or charge the micro chip. It has the capability to read objects at a long distance. It
has high data bandwidth as compared to passive RFID. It is responsible for initiating
communication. It is expensive and cannot operate without battery.
Passive RFID: This type of RFID does not have any internal source of power. It does not
rely on battery and has variety of sizes. It cannot be easily damaged in a harsh environment
unlike active RFID. The communication process is dependent on the size of the antenna and here
read range is considered to be limited.

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RADIO FREQUENCY IDENTIFICATION
Figure 2: Passive RFID Tag
(Source Rajaraman, 2017, p.10)
Semi-passive RFID: This type of RFID has internal battery or power source for keeping
the micro chip charged or powered. This chip will be able to respond as quickly as possible. The
antenna is used for the purpose of back scattering and increasing reading range. This tag has
larger range than passive tags. It makes use of the battery when triggered.
2.2 Applications of RFID
Inventory Management: RFID tag can be fixed to products and items to manage the
inventory in an effective manner. The reader can be located at various positions in the warehouse
for showing the movement of goods. RFID enables the reading of several tags over a remote
location. It also enables the tags to be overwritten for updating the information about the product
(Fan et al., 2014). It helps in preventing under-stocking and over-stocking of products. It can also
provide stock security and control the quality of the goods.
Toll Station Payment: The vehicles can be installed with RFID tags in order to automate
the process of toll payment (Kalantri et al., 2014). This will enable the vehicles to pass the toll
booths without stopping and the toll tax will be deducted from RFID cards. It is possible to
recharge the RFID tags for future purposes.
Animal Tracking: Animal identification and management can be done by RFID tags. It
facilitates effective monitoring of animals of any size and type. It is a significant tool for tracking
the animal movements and identifies their travel and food habits. It can also monitor the heart
rates of the animals. RFID improves the farm management process.

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RADIO FREQUENCY IDENTIFICATION
3. Technical and Business Problems solved by RFID
RFID has simplified the process of asset tracking in factories and warehouses. RFID is
able to locate missing goods. RFID has been able to reduce the cost of inventory. It has also been
able to improve the level of sales in the organization. RFID tags have automated the process of
tracking of goods (Shin & Eksioglu, 2014). Human interventions are not required which saves
the time of the employees and improves their productivity. RFID tags have improved the
efficiency of the organizations.
3.1 Comparison between Barcode and RFID
BARCODE RFID
It is a series of bars that consists of a data set which
is scanned for converting it into numeric codes.
These codes can be further processed.
RFID tags are used for identifying and tracking
goods by using radio waves.
It has the ability to read one tag at one time. It can read several tags per second.
It can be easily replicated. Hence it is less secure. It has a complex design and is more secure.
Labor intensive: Employees are needed for data
collection.
It is an automatic data collection process.
Scanning is possible in close range. RFID tags can be read from long distance.
It does not have read and write capabilities. Large information can be programmed.
It is less expensive. It is more expensive.
Table 1: Comparison between Barcode and RFID
(Source: Lotlikar et al., 2013, p. 821)
Barcode requires manual tracking and there is high possibility of human error. RFID
removes the possibility of human error. Therefore, RFID is considered to be better than barcode.
Figure 3: Barcode Structure

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RADIO FREQUENCY IDENTIFICATION
(Source: Lotlikar et al., 2013, p. 818)
3.2 Comparison between QR code and RFID
QR Code RFID
Line of site is required in this technology. Line of site is not required.
The read range is shorter than RFID. The read range is up to 30 feet for passive and 100
feet for active RFID.
Optical laser is used. Radio frequency is used.
It requires human labor. Human labor is not required.
Information capacity is less and cannot be updated. Information capacity is more and data can be
updated.
Table 2: Comparison between QR code and RFID
(Source: Lotlikar et al., 2013, p. 821)
The wrinkled QR code tags might work with 30 per cent recoverable data. The reliability
of RFID tags is more and hence is it better than QR code.
4. Limitations of RFID
Cost: RFID technology is expensive as compared to barcodes and QR codes. It is
expensive to set up this technology (Lehpamer, 2012). The price of semi active and active tags is
even higher than passive tags.
Collision: There can be signal collision when several tags are being read at the same
time. Anti-collision algorithms can be developed for preventing this problem.
Security: Unauthorized devices can read and modify the data present on the tags in a
silent manner. There can be side channel and virus attacks as well. Encryption of data at every
interface will secure this technology.
Complex Design: RFID technology has tag and reader. The working mechanism is
difficult to understand and it has a unique installation process.

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RADIO FREQUENCY IDENTIFICATION
5. Use of RFID in Walmart
Walmart has been able to increase its sales level by adopting RFID technology. It uses
RFID tags at the pallet and case levels. Its main objective was to improve the level of efficiency
in the supply chain. RFID has helped to improve the supply chain transparency, minimize labor
cost as it is an automatic process and strengthened the inventory control process (Shin &
Eksioglu, 2015). It has helped Walmart to improve JIT inventory system and save supply chain
cost.
Figure 4: RFID in Walmart
6. Use of RFID in Market Place
6.1 Banking
RFID has helped to improve the operational efficiency and data security in the banking
sector. Banks have been able to achieve 90 per cent data accuracy by deploying RFID
technology. RFID tags will make the banks aware when the customers enter and alert the banks
to provide quick service to the needs of the customers (Zhu, Mukhopadhyay & Kurata, 2012).
This will improve the customer service level. Attaching RFID tags to courier bags will enable
the banks to keep track of the documents. RFID tags will also enable the banks to track laptops
and assets so that these assets do not get stolen. Bank cards can have RFID tags for simplifying
the payment procedure.

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RADIO FREQUENCY IDENTIFICATION
6.2 Retail
RFID tags are used in retail industry for the purpose of tracking inventory and carrying
out consumer research. RFID scanners can read tags from a long distance and this will enable the
employees to record quantities as well as locations of products (De Marco et al, 2012). Retail
stores are able to protect themselves from shoplifters. RFID has improved the level of security in
the retail store.
6.3 SCM
RFID technology can be used in SCM for the purpose monitoring and managing
movements of finished products and goods throughout the supply chain. It has reduced the cost
of inventory counting (Fosso Wamba, 2012). It has been able to enhance the timeliness and
accuracy of the inventory data.
6.4 Aerospace National Library
Airline industry makes use of RFID for tracking and handling luggage of the customers.
The books in the library can be tracked by using RFID tags. Tracking of new orders is also
enabled by RFID tags (SINGH & Mahajan, 2017). It helps in locating misplaced books and
interrogates the books. It facilitates efficient library management.
7. Conclusion
This report concludes that RFID technology benefits several industries like banking,
retail and supply chain. This report said that RFID is better than barcode and QR code. It pointed
out few limitations like high cost and security issues of the technology. This report gave a brief
overview about the working mechanism of RFID and the real life problems that can be solved by
using RFID technology.

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RADIO FREQUENCY IDENTIFICATION
8. References
De Marco, A., Cagliano, A. C., Nervo, M. L., & Rafele, C. (2012). Using System Dynamics to
assess the impact of RFID technology on retail operations. International journal of
production economics, 135(1), 333-344.
Fan, T. J., Chang, X. Y., Gu, C. H., Yi, J. J., & Deng, S. (2014). Benefits of RFID technology
for reducing inventory shrinkage. International Journal of Production Economics, 147,
659-665.
Fosso Wamba, S. (2012). Achieving supply chain integration using RFID technology: the case
of emerging intelligent B-to-B e-commerce processes in a living laboratory. Business
Process Management Journal, 18(1), 58-81.
Hutter, M., & Schmidt, J. (2013). Radio Frequency Identification.
Kalantri, R., Parekar, A., Mohite, A., & Kankapurkar, R. (2014). RFID based toll collection
system. International Journal of Computer Science and Information Technologies, 5(2),
2582-5.
Lehpamer, H. (2012). RFID design principles. Artech House.
Lotlikar, T., Kankapurkar, R., Parekar, A., & Mohite, A. (2013). Comparative study of
Barcode, QR-code and RFID System. International Journal of Computer Technology
and Applications, 4(5), 817.
Rajaraman, V. (2017). Radio Frequency Identification. RESONANCE, 549.
Shin, S., & Eksioglu, B. (2014). Effects of RFID technology on efficiency and profitability in
retail supply chains. Journal of Applied Business Research, 30(3), 633.
Shin, S., & Eksioglu, B. (2015). An empirical study of RFID productivity in the US retail
supply chain. International Journal of Production Economics, 163, 89-96.
SINGH, M. N. K., & Mahajan, P. (2017). Application of RFID technology in libraries. Modern
Technologies for Reshaping Libraries in the Digital Era, 70.

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Zhu, X., Mukhopadhyay, S. K., & Kurata, H. (2012). A review of RFID technology and its
managerial applications in different industries. Journal of Engineering and Technology
Management, 29(1), 152-167.