Which inventory management mechanism uses radio-frequency signals to automatically identify and track tags on items?

• A. Barcodes
• B. Cloud ERP
• C. Manual counting
• D. RFID technology

Answer: (D)

RFID technology uses radio-frequency signals to automatically identify and track tags on items. Tags respond to wireless readers without needing direct line-of-sight, and multiple tags can be read at once, often from a distance. This enables real-time inventory visibility, faster checks, and reduced errors, which is why it’s the best fit for automatic identification and tracking. Barcodes require scanning with line-of-sight, manual counting is slow and error-prone, and Cloud ERP is software for managing data rather than a tagging-based identification method.