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312 Part Two Information Technology Infrastructure

FIGURE 7.16 A WIRELESS SENSOR NETWORK

The small circles represent lower-level nodes and the larger circles represent high-end nodes.
Lower-level nodes forward data to each other or to higher-level nodes, which transmit data more
rapidly and speed up network performance.

in the chapter-opening case, used RFID technology to precisely track the loca-
tion of tire components as they moved through the production process.
Walmart has installed RFID readers at store receiving docks to record
the arrival of pallets and cases of goods shipped with RFID tags. The RFID
reader reads the tags a second time just as the cases are brought onto the
sales floor from backroom storage areas. Software combines sales data from
Walmart’s point-of-sale systems and the RFID data regarding the number of
cases brought out to the sales floor. The program determines which items will
soon be depleted and automatically generates a list of items to pick in the
warehouse to replenish store shelves before they run out. This information
helps Walmart reduce out-of-stock items, increase sales, and further shrink
its costs.
The cost of RFID tags used to be too high for widespread use, but now it starts
at around 7 cents per passive tag in the United States. As the price decreases,
RFID is starting to become cost-effective for many applications.
In addition to installing RFID readers and tagging systems, companies may
need to upgrade their hardware and software to process the massive amounts
of data produced by RFID systems—transactions that could add up to tens or
hundreds of terabytes.
Software is used to filter, aggregate, and prevent RFID data from overload-
ing business networks and system applications. Applications often need to be
redesigned to accept large volumes of frequently generated RFID data and to
share those data with other applications. Major enterprise software vendors,
including SAP and Oracle PeopleSoft, now offer RFID-ready versions of their
supply chain management applications.

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