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Wireless Stockroom

Logistics

It’s a Wal-Mart executive’s dream: an inventory system that knows just how many cans of chicken soup are sitting on the shelves and provides a real-time picture of when they arrive from the factory and depart in shoppers’ baskets. The first field test of such a system is about to begin.

The likely test bed: a retail warehouse in Tulsa, OK. The technology: tiny versions of the toll-paying “radio tags” found on many car windshields. This October, researchers from MIT’s Auto-ID Center will affix these tags to forklift-sized pallets of products. Tag readers on warehouse shelves will log the movements of arriving and departing pallets; this information will be relayed via the Internet to retail headquarters and manufacturers (see “Beyond the Bar Code,” TR March 2001).

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Sponsored by major retailers and manufacturers, the test will extend to tracking individual cans and boxes by next April. This move will be enabled by a new breed of tag costing just pennies each. These new tags, now being prototyped at MIT, will exploit some of the smallest silicon chips ever used.

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The potential payoff: a level of inventory monitoring not possible with today’s bar code technology, which tracks the movements of product types, not individual items. Bar codes save businesses billions every year; wireless alternatives may save billions more by boosting efficiency and reducing theft, oversupplies and shortages, says David Weil, a professor of economics at Boston University.

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