In traditional bar-code systems, the unique item identification number is printed on an sticker and pasted on to the items. To read these stickers operator require line of sight it means he should hold device in a proper way. The data from the bar-code scanner is fed into the system which then processes the information to record the locational information of the items. In RFID based system, each item is fitted with a RFID tag. The RFID tag is basically an electronic radio transmitter comprising of a micro-chip and an antenna and a tiny battery, everything fabricated on a thin plastic sheet. It can be easily attached to a variety of items directly.