What is a primary benefit of using Radio-frequency identification (RFID) technology in inventory management?

Prepare for the WGU BUS2030 D075 Information Technology Management Essentials OA Test with in-depth flashcards and multiple choice questions. Each question includes hints and explanations. Get exam-ready efficiently!

Utilizing Radio-frequency identification (RFID) technology in inventory management offers significant advantages, particularly in the area of real-time asset tracking. This technology employs electromagnetic fields to automatically identify and track tags attached to objects. In the context of inventory management, RFID allows businesses to monitor their inventory levels continuously and accurately.

Real-time asset tracking through RFID enables organizations to have instant visibility into their stock levels and the movements of products throughout the supply chain. This leads to improved accuracy in inventory assessments and reduces the chances of stockouts or overstock situations. Additionally, the efficiency gained from RFID eliminates the need for manual counting and tracking, which can be labor-intensive and prone to errors. The result is not only enhanced operational efficiency but also better-informed decision-making regarding inventory purchases and management.

In contrast, the other options do not reflect the primary benefits associated with RFID technology in inventory management. Increased manpower requirements would contradict the efficiency gained from automation and real-time tracking. Lower production speed and minimal automation also undermine the advancements RFID brings to inventory processes, which are characterized by speed and high levels of automation.

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