Abstract Radio Frequency Identification (RFID) is an essential wireless technology with different supply chain management (SCM) potential applications. Managing a supply chain primarily requires an ‘information sharing’ architecture and visibility of business process-related data. This information architecture helps the operational event management team identify critical incidents and deploy substitute actions. The RFID-based information system provides a technological infrastructure to supply chain business process-related data. The occurrence of tag-collision incident essentially challenges the tag detection ability of RFID systems. Tag collision takes place when more than one tag responds simultaneously to the reader at the identification process. Different algorithmic solutions are available to the tag collision problem. In general, the algorithmic solutions are of two types: (i) tree-based solutions, and (ii) ALOHA-based solutions. This paper presents a novel dynamic frame slotted ALOHA algorithm. It uses probability theory for tags to access the frame and improve the system efficiency. This paper presents experimental details to evaluate the performance of the Electronic Product Code Generation-2 (EPC Gen-2) arbitration algorithm. Finally, the paper discusses the experimental results of the proposed algorithm, and concludes with the scope of future research.