Inventory is a store of items for future use. There are three types of inventory cost: carrying cost, ordering cost and shortage cost. Many firms attempt to reduce inventory cost to an appropriate level by employing various inventory management techniques. Technology is one tool that firms use to improve their inventory management, for example, “Automated storage and retrieval system” and “Barcode technology”. Recently, the latest technology called RFID (Radio Frequency Identification), which can be managed remotely at a distance of several metres, improves data accuracy, and reduces labor and time in the inventory management process. The application of technology in inventory management will enhance effectiveness and reduce cost.