The fundamental value of
item-level RFID use is the ability to correlate inventory movement with customer activity
(Klein and Permenter, 2010). Item-level tagging enables information visibility that reduces
uncertainty all along the supply chain and this increased certainty can improve supply
chain coordination, reduce inventory, increase product availability, provides better
management of perishable items and returns, among others (Zhou, 2009). Wal-Mart’s
recent refocus on tagging selected items at the item level, specifically men’s jeans and
basics, is perhaps the best-known example of this trend (Roberti, 2010; Bustillo, 2010).