What is Stock Out

This chapter examined how the use of technology in inventory control impacts organizational performance since inventory is the most valued asset of an organization. From the summary of this study, it can be concluded that the adoption of technology as RFID in inventory management leads to improve the organizational performance in both financial and customer responsiveness. In the business performance, RFID could improve the organizational performance in terms of reducing inventory carrying costs on the warehouse, such as lowering the expiring cost of the product stocked, increasing space in a warehouse, avoiding exceed inventory, and decreasing labor costs. Moreover, from the perspective of customer service, the adoption of RFID could increase customer responsiveness in terms of reducing stock out risk, increasing the accuracy of product delivery, and increasing the interaction between customers with the organization.