On The Security of RFID-based Monitoring Mechanism for Retail Inventory Management

  • Chen, Yu Yi (Department of Management Information System, National Chung Hsing University) ;
  • Jan, Jinn Ke (Department of Computer Science and Engineering, National Chung Hsing University) ;
  • Tsai, Meng Lin (Department of Computer Science and Engineering, National Chung Hsing University) ;
  • Ku, Chun Ching (Department of Computer Science and Engineering, National Chung Hsing University) ;
  • Huang, Der Chen (Department of Computer Science and Engineering, National Chung Hsing University)
  • Received : 2011.09.15
  • Accepted : 2011.11.02
  • Published : 2012.02.28


The aim of this article is to provide a study on the issue of inventory inaccuracy and to show the manner in which RFID technology can improve the inventory management performance. The objective of inventory control is to monitor the stock flow of merchandises in order to understand the operating profit and loss. A proper mechanism of inventory control could be made to help the profitability. As RFID is applied to inventory control, it can improve efficiency, enhance accuracy and achieve security. In this paper, we introduce the evolution of different mechanisms of inventory control with RFID system-counting method, collect-all method, and continuous monitoring method. As for improving the accuracy of inventory check during business hours, continuous monitoring is the solution. We introduce the infrastructure of the RFID inventory management system based on M2M architecture can make the inventory be efficiently monitored with instant warnings.


  1. A. Raman, N. DeHoratius and Z. Ton, "Execution: The missing link in retail operations," Calif Manage Review, vol.43, no.3, pp.136-152, 2001.
  2. T. W. Gruen and D. S. Corsten, "A comprehensive guide to retail out of stock reduction in the fast-moving consumer goods industry," Grocery Manufacturers of America, 2007.
  3. Y. Kang and S. B. Gershwin, "Information inaccuracy in inventory systems: Stock loss and stockout," IIE Tranactions, vol.37, no.9, pp.843-859, 2005.
  4. A. G. Kok and K. H Shang, "Replenishment and inspection policies for systems with inventory record inaccuracy," Manuf Serv Operat Manage, vol.9, pp.185-205, 2007.
  5. Y. Rekik, "An analysis of the impact of RFID technology on inventory systems," in Proc. of Unique Radio Innovation for The 21st Century, pp.435-450, 2010.
  6. H. S. Heese, "Inventory record inaccuracy, double marginalization and RFID adoption," Production and Operations Management, vol.16, no.5, pp.542-553, 2007.
  7. Y. Rekik, E. Sahin and Y. Dallery, "Analysis of the impact of the RFID technology on reducing product misplacement errors at retail stores," International Journal of Production Economics, vol.112, no.1, pp.264-278, 2008.
  8. Supermarket, "Supermarket shrink survey," National Supermarket Research Group, 2001.
  9. R. C. Hollinger and J. L.Davis, "National retail security survey," Department of Sociology and the Center for Studies in Criminology and Law,
  10. R. Hollinger, "2008 National retail security survey: Preliminary results," A Town Hall Meeting with Dr. Richard Hollinger.
  11. Wikipedia, "Barcode",
  12. EAN International and the Uniform Code Council,
  13. D. C. Wyld and M. C. Budden, "Upping the Ante: using RFID as a competitive weapon to fight shoplifting and improve business intelligence," The International Journal of Managing Information Technology (IJMIT), vol.1, no.1, Nov.2009.
  14. M. C. O'Connor, "Retailers see RFID's potential to fight shrinkage," RFID Journal, Aug.2008.
  15. R. Wessel, "To future-proof its future store," RFID Journal, Sep. 2008.
  16. D.C. Wyld, "RFID 101: The next big thing for management," The Engineering Management Review, vol.35, no.2, pp.3-19, May.2007.
  17. M. Bhattacharya, C.-H. Chu, J. Hayya and T. Mullen, "An exploratory study of RFID adoption in the retail sector," in Proc. of Oper Manag Res, vol.3, pp.80-89, 2010.
  18. D. Delen, B. C. Hardgrave and R. Sharda, "RFID for better supply chain management through enhanced information visibility," Production Operations Management, vol.16, no.5, pp.613-624, 2007.
  19. B. C. Hardgrave, J. Aloysius and S. Goyal, "Does RFID improve inventory accuracy? A preliminary analysis," International Journal of RF Technologies: Research and Applications, vol.1, no.1, pp.44-56, 2009.
  20. B. Hardgrave, S. Goyal and J. A. Aloysius, "RFID-Enabled visibility and retail inventory record inaccuracy: Experiments in the field," University of Arkansas Working paper, 2010.
  21. N. DeHoratius and A. Raman, "Inventory record inaccuracy: An empirical analysis," Management Science, vol.54, no.4, pp.627-641, 2008.
  22. de A. G. Kok, van K. H. Donselaar, and van T. Woensel, "A break-even analysis of RFID technology for inventory sensitive to shrinkage," International Journal of Production Economics, vol.112, no.2, pp.521-531, 2008.
  23. W.-C. Hsu, "A study of applying mobile wireless communication on the inventory process for the retailing industry-Using the bakery retailing as an example," Master Thesis, Tamkang University, 2003.
  24. Asiainfo, "The concept of distributed control system", ?id=919.
  25. C. C. Tan, B. Sheng, and Q. Li, "How to monitor for missing RFID tags," in Proc. of The 28th International Conference on Distributed Computing Systems, 2008.
  26. F. Wang, S. Liu and P. Liu, "Complex RFID event processing," The International Journal on Very Large Data Bases, vol.18, no.4, pp.913-931, 2009.
  27. M.C. O'Connor, "Outdoor clothing and equipment retailer tests RFID-EAS tags," RFID Journal, Aug.2008.
  28. J. Patton and B. C. Hardgrave, "RFID as electronic article surveillance: Technology performs well in feasibility study," Information Technology Research Institute, 2008.
  29. C. Swedberg, "Raflatac releases RFID tags with built-in EAS," RFID Journal, Dec.2007.
  30. G. R. Paul, "An introduction to Radio Frequency Identification (RFID) methods and solutions," Assembly Automation, vol.26, no.1, pp.28-33, 2006.
  31. Yi Huang, Brian C. Williams and Li Zheng, "Reactive, model-based monitoring in RFID-enabled manufacturing," Computers in Industry, In Press.
  32. D. Molnar and D. Wagner, "Privacy and security in library RFID: Issues, practices, and architectures," in Proc. of Conference on Computer and Communication Security, pp.210-219, 2004.
  33. Neyre Tekbiyik and Elif Uysal-Biyikoglu, "Energy efficient wireless unicast routing alternatives for Machine-to-Machine networks," Journal of Network and Computer Applications, 2011.
  34. Krishnan V and Bhaswar Sanyal, "M2M technology: Challenges and opportunities," Tech Mahindra, 2010.
  35. Lantronix, "Enabling business intelligence with M2M: An introduction to device networking solutions," Lantronix, 2005.
  36. Shouqin Zhou, Weiqing Ling, and Zhongxiao Peng, "An RFID-based remote monitoring system for enterprise internal production management," The International Journal of Advanced Manufacturing Technology, vol.33, no.7-8, pp.837-844, 2007.