According to the cost comparison, what was the economic impact of a $0.10 passive tag versus a $5.00 active tag for tagging 100 items?

Answer

The passive cost ($10.00 total, sunk cost) was vastly lower than the annual active cost ($500 annually).

The economic disparity between active and passive tags is central to understanding why passive technology won the supply chain application race. If a high-value active tag costs $5.00 and needs annual replacement, tagging 100 items on a single pallet results in an annual expense of $500 just for the tags. In stark contrast, if Walton's passive tag costs only $0.10, tagging the same 100 items totals $10.00, and crucially, this cost is sunk after the initial application since no battery maintenance is required. This massive cost differential transforms the equation, making it economical to tag billions of individual items annually using passive technology, whereas active tags remain restricted to tracking far fewer, extremely high-value assets.

According to the cost comparison, what was the economic impact of a $0.10 passive tag versus a $5.00 active tag for tagging 100 items?

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