Cloud based RFID is becoming a popular area of research these days. However, no any research is there where cloud computing goes hand in hand with RFID uses. In this paper, RFID is used as an important technique in cloud based supply chain management system. This paper is to find less expensive passive RFID in supply chain management using cloud based software infrastructure. This paper explains basic principles of RFID, basics of supply chain management and cloud based supply chain management. It tries to reduce the cost of supply chain management businesses using RFID and cloud based platform.