What technology involves tiny chips to track pricing and inventory?

Radio frequency identification (RFID) technology utilizes tiny chips, known as RFID tags, to track pricing and inventory effectively. These tags can be attached to products or assets and contain memory that can store information about the item, such as its price, description, and inventory levels. RFID uses radio waves to transmit this information to a reader, allowing for quick and accurate tracking without needing a direct line of sight, which is a significant advantage over traditional barcodes.

The ability to read multiple RFID tags simultaneously speeds up the inventory management process, making it more efficient for businesses to monitor stock levels and reduce human error in tracking product movement. This capability leads to improved supply chain management, better sales forecasting, and enhanced customer satisfaction due to better stock availability.

In contrast, barcode scanning requires line-of-sight and can only read one barcode at a time, QR codes are more commonly used for marketing purposes and linking to information rather than for real-time inventory tracking, and digital tagging is a broader term that could refer to various technologies, not specifically RFID. Hence, RFID stands out as the technology specifically designed for precise tracking of pricing and inventory through the use of tiny chips.