RFID technology is primarily used for which purpose in inventory management?

• A. Increases manual data entry
• B. Eliminates need for packaging
• C. Reduces supplier diversity
• D. Allows real-time tracking without line of sight

Answer: (D)

RFID provides real-time visibility of inventory without needing direct line of sight. By tagging items with radio-frequency identifiers and using readers at checkpoints or across warehouse areas, you can identify and locate many items at once as they move through receiving, storage, picking, and shipping. This automatic data capture speeds processes, reduces manual entry, and keeps inventory records up to date, even when items are inside pallets or containers. The approach is less about packaging or supplier variety and more about continuous, accurate tracking. The other options don’t fit because RFID doesn’t increase manual data entry, doesn’t make packaging unnecessary, and isn’t about reducing supplier diversity; the standout benefit is real-time tracking without line of sight.