APICS Certified In Planning And Inventory Management (CPIM) Exam 1 Practice

The main idea is identifying and tracking items with electronic tags that can be read without direct sight or close proximity. Electronic tagging stored on the item lets a reader pull data via radio waves, so you don’t need to scan the tag visually or be right next to it. This is RFID, which can read tags through packaging or at a distance, using a reader and antenna to retrieve the stored information. RFID tags can be passive (no internal power, activated by the reader) or active (powered tag with its own battery), and they enable real-time inventory visibility and faster data capture in many operations. Other options don’t fit this concept: random-location storage is about where items are kept, not how data about them is captured; a purchase requisition is a purchasing document; and product layout refers to how equipment and workstations are arranged.