2. Literature reviewRFID techno logy and its application in warehouse management are first reviewed. The literature related to lean production and value stream mapping are then investigated. 2.1 RFID application in warehouse management RFID has become a critical technology for efficiency and effectiveness improvement in production, logistics, and supply chain management. RFID can identify, classify, and manage theflow of materials and information throughout the supply chain wirelessly without human intervention in order to a void human error. Information of an objects current location , condition, and history can be stored and retrieved on areal time basis, giving better visibility for decision making. In its basic form, a typical RFI D system has two major components , a reader (also called an interrogator) and tags(also called trans ponders ). A tag consists of a microchip storing identification data with two typical types : (1) passive, without any power source and (2) active, with a power source