Abstract: A system and method are provided for interrogating passive radio frequency identification (RFID) transponders located in compartmentalized areas such as on shelves or in other spatially-partitioned storage areas. The system includes a controller and a plurality of minimal function RFID readers coupled to the controller via a network-compatible cable. The controller is configured to address a subset of at least one reader at a time to interrogate the RFID transponders located in at least one of the compartmentalized areas. The readers are each give a physical location and a unique address, through which the controller would know the locations of the RFID transponders being interrogated.