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Improving Inventory Management Systems at Racetrac Petroleum Stores Using RFID

Justin T. Hill

MIS535: Managerial Applications of Information Technology

Devry University, Keller School of Management

Dr. Charles Brooks

August 3, 2012

Racetrac Petroleum employs a mix of different innovative technologies to stay ahead of its competitors. This has enabled the company to become a recognized leader in retail and convenience-store shopping in the Southeast United States. This proposal will provide insight on how Racetrac can augment its technology efficiency by improving its inventory management system. The business problem to be solved is augmenting the efficiency of the inventory management process at Racetrac Petroleum, Inc. by minimizing the time and labor required by the traditional method of using bar codes and scanners to manage inventory.
Racetrac Petroleum, Inc. is a privately-owned corporation which was founded in 1934 in St. Louis, Missouri but relocated its corporate headquarters to Atlanta, Georgia in 1976. It offers gasoline, including octane fuels and ultra-low sulfur diesel; and lunch and breakfast options, medicines, gift cards, money orders, auto supplies, lottery tickets, maps, newspapers, air filling facilities, cigarettes, bread, batteries, and other personal needs. I propose the use of Radio Frequency Identification Data (RFID) to track the movement of products in Racetrac stores. Implementing this technology will improve and expedite the traditional method of manually taking inventories at different store locations.
The benefits of this technological innovation flourish. The ultimate benefits of adopting RFID technology for inventory management at Racetrac locations are the ability to better track stock-keeping-units (SKU); fluent merchandise flow; and prevent out-of-stocks while eliminating non-productive, profit

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