Abstract: The invention encompasses a system that utilizes radio frequency circuitry in combination with microprocessor devices and specially designed software to provide an improved structure and operation for the monitoring, protection and control of inventory assets. Generally, the system is embodied in a system controller unit, one or more interrogator devices and multiple transponder units. The system controller unit may be a personal computer (PC) based device for effecting the control and monitoring of the system's operation. In addition, the system controller unit serves as a data collection device and as an alarm device. The interrogator device(s) incorporate a transceiver controlled by microprocessor circuitry within the interrogator devices. The transponder units also include a radio transceiver and microprocessor circuitry. The transponder units are attached to a container or item to be monitored and protected.