Perpetual systems can be either batch or on-line.

In batch systems, inventory records are collected periodically

and entered into the system. In on-line systems, the transactions are recorded immediately. Advantage of on-line
systems is that they are always up-to-date.

Supermarkets, discount stores, and department stores have always been major users of periodic counting
systems. Today, most have switched to computerized checkout systems using a laser scanning device that reads a
universal product code (UPC), or bar code, code printed on a label that has printed on an item tag or on packaging. A
typical grocery product code is illustrated here

universal product code Bar, code printed on a label that has information about the item to which it is attached.

Benefits of Bar coding- Besides retailing, manufacturing and service industries also benefit from the simplified
production and inventory control it provides. *Automatic routing, scheduling, sorting, and packaging can also be done
using bar codes.
Requirements for a supply chain

#4 use of RFID

What is RFID?

-Radio frequency identification (RFID)(a technology that uses radio waves to identify objects in supply chain—source
ppt)

-a small tag like electronic device that consist a small chip and antenna (similar to a barcode or magnetic strip na pede I
scan)

-used in identification of goods (retail), animals (farm) or even people (hospital)

ADVANTAGES of RFID?

allow non-contact reading, ability to track non-moving objects,

Tags can be read through a variety of substances such as snow, fog, ice, paint, crusted grime, and other visually and
environment where bar codes would be useless.

RFID tags can read in less than 100 milliseconds Source: Aim global techonology,from our prescribed text book
Operations management 7th edition

RFID VS BARCODE
1. How does RFID ensure that there is sufficient stock in a retail outlet?

WALLMART POV

Wallmart background

FRID and wallmart

-RFID’s public awareness is increased mainly because of wallmart company.

-According to Harold G Clampitt, who wrote the RFID Identification textbook, decision makers at wallmart
believed that the company was lacking in sales and customer satisfaction due to inaccurate stock numbers so
they hoped a more accurate ordering decisions by using RFID. They hoped that RFiD could resolve these issues.

-they ensured that there is sufficient stock through the use of IFRD because according to a study conducted by
the university of Kansas RFID Research Center on Wallmart’s use of IFRD, stores that incorporated RFID reduced
out-of stocks at store level by 16% over non-RFID locations.

-HOW they ensured? steps? the wallmart retail chain announced that their top 100 suppliers would be required
to attach RFID tags to all cases and pallets of incoming shipments. The previous year, Walmart launched its RFID-
based inventory tracking pilot with only 7 stores in Texas and 8 product suppliers participating.

-RFID over barcode because there’sno duplicate reading and more powerful ang sensor.

-BENEFITS:
 -WALLMART’S QUOTE;

P&G POV

What is P&G?

2. How do various members of supply chain benefit from the use of RFID?

WHAT ARE THESE VARIOUS MEMBERS? From suppliers to distributors to consumers

WALLMART POV

*Benefits to suppliers

*Benefits to distributors

*Benefits to resellers

*Benefits to end customers

RFID tags can also transfer much more information than bar codes traditionally used for this
purpose. Walmart continuously boasts numerous benefits of using RFID technology for effective
inventory management, reducing the Bull-whip effect and reducing excess inventory across the entire
supply chain.

Inventory Visibility: By managing inventory with RFID, companies like Walmart can make shopping

with a physical retailer more efficient. ... With accurate stock information available online, customers
can see what items are currently in stock at each store and can also order out-of-stock items

P&G’s POV

*Benefits to suppliers

*Benefits to distributors

*Benefits to resellers

*Benefits to end customers

Benefits of P&G sa RFID?

Other benefits
Manufacturers: