An Autonomous Inventory Replenishment System through Real-Time
Visibility and Collaboration based on IOT and RFID Technology
EL MEHDI MANDAR, TAOUFIQ BELHOUSSINE DRISSI, BAHLOUL BENSASSI,
NAJAT MESSAOUDI, WAFAA DACHRY
Department of Physics,
Hassan II University,
Km 8 El Jadida Road, B.P 5366 Maarif Casablanca 20100,
MOROCCO
Abstract: - Supply chains consist of interconnected nodes where the movement of materials is dictated by the
exchange of information. The more effectively each node gathers and disseminates information to its upstream
and downstream partners, the more efficient the material flows become, hence enhancing the efficiency of the
supply chains. An essential method for analyzing a supply chain is to concentrate on how inventory meets
demand at each point. Insufficient supply leads to lost sales and reduced customer satisfaction, potentially
driving customers to seek alternatives, resulting in future lost sales. Therefore, firms are embracing
technologies like IoT and RFID to gather data and facilitate more efficient sharing, resulting in improved
information and material flow. Data sharing boosts visibility, hence fostering collaboration among supply chain
partners. Certain studies in the literature have employed IoT and RFID technology to enhance inventory
visibility, while others opt to share the gathered data with their partners to improve inventory replenishment
efficiency. Nevertheless, this paper presents an autonomous inventory replenishment system that utilizes IoT
technologies to replenish inventory through real-time visibility and collaboration. The system facilitates the
sharing of real-time data, such as inventory levels, with supply chain partners. Additionally, it enables
automatic collaboration by allowing partners to take action based on the shared data, such as activating orders
to replenish inventories at various points in the supply chain. To assess the suggested approach, we conducted
an inventory replenishment simulation, comparing it to previous studies in terms of the amount of lost sales
incurred when confronted with unpredictable demand. Across the 3 utilized datasets, the proposed approach
demonstrated a 22.9% reduction in lost revenue compared to its nearest competition. These findings
demonstrate a direct correlation between the utilization of technology in inventory replenishment processes and
the speed at which inventory is refilled, as well as the reduction in lost sales.
Key-Words: - Supply chain, IoT, RFID, inventory replenishment, visibility, collaboration.
Received: May 16, 2023. Revised: December 18, 2023. Accepted: January 14, 2023. Published: February 22, 2024.
1 Introduction
A supply chain consists of many organizations, [1],
working together in a collaborative setting to satisfy
customers’ demands. To enhance collaboration,
visibility needs to be improved. To this end, RFID
and IOT are two of the main technologies being
used, [2]. RFID and IoT technologies make it
possible to increase asset visibility, enhance
information content, speed up the flow of
information, and improve inventory management,
[3].
Visibility helps actors achieve an enhanced
overview of material flows within complex supply
chains, [4], [5], [6]. According to [7], there are three
basic "tiers" or levels of supply chain visibility in
general:
Tier 1: This level represents the visibility of a
company's internal operations and processes.
Tier 2: This level represents the visibility of a
company's suppliers and their activities.
Tier 3: This level denotes the visibility of a
company's suppliers as well as any other
participants in the supply chain.
There exists an additional degree of supply
chain visibility, known as the fourth tier, which
involves the integration of data from the three
previous tiers. This integration allows for a
comprehensive understanding of the entire supply
chain from start to finish. The objective of the
suggested system is to attain the visibility of the
fourth tier.
Visibility is currently an enabler for supply chain
relationship collaboration, business planning, and
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decision support, [8]. The concept of collaboration
can be categorized into three interrelated
dimensions: (1) Information sharing; (2) Decision
synchronization; and (3) Incentive alignment, [9].
A supply chain’s performance is as good as its
ability to satisfy customers’ demands. For this
reason, in this paper, we focus on inventory
replenishment as a measure of how visibility and
collaboration enhance supply chain performance. In
the literature, higher technology adoption is related
to better inventory replenishment. The longer it
takes for a store to realize that the stock level of a
product has hit the reordering threshold, and the
longer it takes to formulate an order and submit it to
the supplier, the longer the ordered products will
take to arrive at the store and the higher the potential
loss of sales will be. The proposed system
eliminates all these times by showing real-time
inventory levels and triggering automatic orders that
are accepted and fulfilled right away throughout the
supply chain, guided by a set of rules that the supply
chain partners agreed upon. Theoretically, the
system eliminates the time to obtain the information
(by monitoring inventory in real-time), to make the
decision (decide what product to order and how
much), and to act based on the decision made
(submit the order, accept it, and fulfill it without
delays). The system integrates all supply chain
nodes (suppliers, transporters, warehouses, and
stores) and can share information and trigger orders
to replenish inventories throughout the supply chain.
This paper is organized as follows: in the next
segment of our introduction, we present the related
works. In the third section, we present the system
architecture and modules. In the fourth section, we
present the simulation and results. Finally, in the last
section, we give a conclusion to the conducted
work.
2 Literature Review
Prior research in the literature has attempted to
improve the inventory replenishment process by
augmenting visibility and/or collaboration in various
stages of the process. To comprehend the disparities
between the prior and the proposed system, it is
imperative to first grasp the fundamental stages
involved in an inventory replenishment operation.
The timing of these steps is contingent upon the
technology employed and the extent of visibility and
coordination among supply chain participants. The
greater the level of automation in a system, the
faster the inventory replenishment process will be.
The specific durations for each stage are listed in
Table 1.
While some of the systems that we will discuss
in this section do not have inventory replenishment
as their main focus, they improve it indirectly
thanks to their architecture and logic. Consequently,
we will compare them to the proposed system by
their ability to improve the inventory replenishment
process.
Table1. Inventory replenishment times sequence
time
description
1
The time duration between hitting the
reordering point and being aware of it.
2
The time of formulating a purchase request
3
The time of formulating an order
4
The time to get approval and signatures on
documents
5
The time spent on reviewing the order before
submission
6
Time spent on order submission and
confirmation
7
The time between the supplier receiving the
order and starting fulfillment
8
Just-in-time order and transport preparation
(no delays)
In [10], an inventory management system using
RFID technology to improve inventory searching
and counting is presented. However, since it does
not allow for real-time monitoring, it does not
eliminate time 1 but only reduces it while the
proposed system eliminates all the 8 steps. In [11],
[12], [13], systems that use IoT and RFID
technologies to track and monitor inventories in
different industries (food, construction, etc.) were
presented. These systems eliminate the need to
check the inventory to know at which level it is,
thus eliminating the first time in Table 1. In
comparison, the proposed system eliminates the
time of all 8 steps as it conducts them
instantaneously.
In [14], [15], systems using RFID and IoT
technologies to make products available in a just-in-
time manner are presented. These systems aim to
have goods ready for pickup by a transporter to
eliminate any delays that can make the inventory
replenishment process take longer. This means that
these systems eliminate the time of the last step
(Table 1) of the inventory replenishment process. In
contrast, the proposed system eliminates the time
needed for all steps.
In [16], [17], a system allows for a different
approach to inventory replenishment called vendor-
managed inventory (VMI), in which the supplier (or
warehouse) manages the store’s inventory. Thanks
to RFID and IoT technologies. The supplier or
warehouse can track the store’s inventory levels and
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conduct the replenishment process by deploying
orders to fill the retailer's inventory, while the retail
store only checks the order content and approves (or
disapproves) the order. Thus, this system eliminates
the time needed to perform all steps (Table 1)
except times 5, 6, and 8. While this is a good
attempt to optimize the inventory replenishment
process, it is still outperformed by the proposed
system as it eliminates all 8-time durations.
In [18], the presented system uses IoT
technology to track and replenish consumables in
customers’ home appliances like coffee machines
and washing machines. When the stock is low, the
supplier automatically sends out a shipment to
replenish his customers’ inventory. This approach is
called smart replenishment. While it is used in a
different scenario than the proposed system as it is
directed to consumers, it is the most similar to the
proposed system in the literature up to date. In
comparison to the proposed system, this system
eliminates all time durations in Table 1 except the
last one, while the proposed system eliminates all of
them.
Table 2 shows a direct comparison between the
previous systems and the proposed system in terms
of inventory replenishment steps optimization.
Table 2. Comparison between the previous systems
and the proposed system
[10]
[11]
,
[12]
,
[13]
[14]
,
[15]
[16]
,
[17]
[18]
The
proposed
system
1
The time duration
between hitting the
reordering point and
being aware of it.
R
E
N
E
E
E
2
The time of
formulating a
purchase request
N
N
N
E
E
E
3
The time of
formulating an order
N
N
N
E
E
E
4
The time to get
approval and
signatures on
documents
N
N
N
E
E
E
5
The time spent on
reviewing the order
before submission
N
N
N
N
E
E
6
Time spent on order
submission and
confirmation
N
N
N
N
E
E
7
The time between the
supplier receiving the
order and starting
fulfillment
N
N
N
E
E
E
8
Just-in-time order and
transport preparation
(no delays)
N
N
E
N
N
E
Where R denotes “Reduced”, E denotes
“Eliminated”, and N denotes “Normal”.
While systems in the literature tried to eliminate
the time of one or multiple steps in the quest for
better inventory replenishment, the proposed system
eliminates the time it takes to do all steps since it
makes decisions automatically for all supply chain
parties following a set of rules on which they have
agreed beforehand. This approach drives the time it
takes from information to decision to action to zero
while pushing visibility and collaboration between
supply chain partners to unprecedented levels.
3 System Architecture
In this paper, we propose an IoT-based real-time
supply chain visibility and collaboration system.
The system uses RFID and IoT technologies to
render objects in the supply chain traceable. An
object is defined in this work as any equipment,
vehicle, material, or product tagged with an RFID or
GPS tag. RFID tags are used for indoor tracking,
while GPS tags are used for outdoor tracking. The
proposed system collects data from RFID and GPS
tags with the help of RFID readers and satellites,
respectively. Then, collected data is made available
either directly, or after processing, to partners
following their functions and their clearances.
The proposed system’s objective is to allow
real-time collaboration in supply chain management
by increasing visibility between supply chain
partners. Practically, the system tracks
manufacturing, inventory, order processing, and
demand to trigger orders automatically at each node
of the supply chain.
The system considers a supply chain made of
suppliers, transport providers, warehouses, and retail
stores. Figure 1 illustrates the considered supply
chain model.
Fig. 1: Considered Supply Chain Model
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Fig. 2: Simplified product-based supply chains
model
Each node of the supply chain can collaborate
with more than one other node of the upstream or
downstream supply chain, depending on the
products pulled by the retail stores.
Fig. 3: The considered supply chains model
The system’s architecture, as shown in Figure 4,
consists of four layers: the data collection layer, the
data warehouse layer, the data processing layer, and
the user interface layer.
3.1 Data Collection Layer
This layer is responsible for collecting data from
each node of the supply chain to store it in the data
warehouse layer. Data collection in the proposed
system is done in four separate node types
(suppliers, transport providers, warehouses, and
retail stores).
3.1.1 Supplier Data Collection Layer
We consider that a manufacturer possesses one or
multiple manufacturing lines for one or many
products. Manufacturing lines consist of a series of
inventory and work posts. At each inventory (raw
materials, work in progress, and finished goods) and
each work post, one or more RFID readers are
placed to read the tagged materials flowing in and
out of the inventory or work post. This results in
better tracking of materials at each step of the
manufacturing process.
3.1.2 Transport Provider Data Collection Layer
We consider that a transport provider possesses a
fleet of vehicles of varying capacities. Each of these
vehicles is traceable via GPS. Thus, the position of
the vehicle is known at all times. In addition,
because of the integration of the transport provider
into the proposed system, the user can know at any
time what merchandise the vehicle is carrying and
how much.
3.1.3 Warehouse Data Collection Layer
We consider that a warehouse is equipped with
readers strategically placed to read every RFID-
tagged SKU in the warehouse. Operators are
equipped with Personal Digital Assistants (PDA),
on which close-range RFID readers are mounted, to
verify products’ identities before picking. When a
product is no longer read by storage placements’
readers and is read by operators’ readers, it is then
concluded that it was picked. When a product is
read by the packing zone RFID reader, it is
concluded that it is in the packing zone, and when it
is no longer read by the packing zone reader (after
being read at first), it is then concluded that it left
the packing zone and is ready for shipment. If a
product is no longer read by storage placements’
readers and is not read by any operator’s PDA, it is
then concluded that it is not tagged correctly
(meaning either the damage or absence of the RFID
tag).
3.1.4 Store Data Collection Layer
We consider that a retail store is equipped with
RFID readers in-store and in stock, strategically
positioned to be able to read all tagged products
present in its space. When a product's RFID tag is
read and separated from it, the system concludes
that the product is bought.
3.2 Data Warehouse Layer
This layer is responsible for storing all the data
needed for system operation. It stores static data like
product identities, tags' identities, readers' identities,
vehicle identities, etc. In addition to dynamic data
like RFID readings, GPS positions, orders' statuses,
etc.
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Fig. 4: System architecture
3.3 Data Processing Layer
3.3.1 Inventory Consumption Analytics Module
This module, which is used at each inventory within
the supply chain, is responsible for tracking
inventory consumption, as shown in Figure 5. It
works using a KPI called inventory consumption per
time unit (i.e., hour), which indicates the speed at
which the products’ stock is being drained. This
information, when visible to other upstream
partners, can be used to adjust manufacturing
planning and transport schedules. The following
formula can be used to determine how much
inventory was consumed over a certain period, [19],
[20]:
IC = SI P EI
IC: Inventory Consumption
SI: Starting Inventory
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P: Purchases
EI: Ending Inventory
The original value of the inventory that a
corporation possesses at the start of the period under
examination is referred to as "beginning inventory."
The term "purchases" denotes the total cost of
merchandise that the business purchased during the
specified period, including both direct.
Fig. 5: The inventory consumption algorithm
3.3.2 Collaboration Modes Module
These modes define the level of the collaboration of
partners on the same supply chain:
-Total collaboration mode: in which all partners
collaborate not just by sharing data but also by
permitting the system to act based on that data to
place automatic orders, prepare merchandise, and
transport. To operate, this mode needs to calculate
the inventory threshold on which an order for a
product is placed. To do this, the system calculates
how much time the remaining inventory will take to
drain based on the current inventory draining speed.
To explain how this module works, we consider the
Figure 2 supply chain model. When, for example,
the retail store’s product’s inventory level reaches a
certain threshold, which can be defined by the user
or defined automatically by the system, this module
first checks if there are no incoming shipments of
that same product with the desired quantity and then
places an order at the warehouse level. If the
warehouse inventory of that same product cannot
satisfy the placed order, this module checks if there
are any incoming shipments of that product from the
supplier to the warehouse with the desired quantity;
if not, it then places an order at the supplier level. If
the product, at the supplier level, is ready to be
shipped, this module reserves a transport volume for
the order to be shipped and prepares the orders to be
shipped in the meantime. When the order is shipped,
the warehouse is notified of the approximate arrival
time to prepare reception, and the transporter
(between the warehouse and the retail store) is also
notified to prepare shipping to the retail store.
The retail store is also notified to prepare
reception.
Having all partners connected to a single system
and allowing this level of instant information
sharing makes it possible to streamline the
workflow and reduce wasted time in all the
processes of the supply chain. The algorithm of this
module is presented in Figure 6.
-Analytics collaboration mode: This collaboration
mode includes all of the total collaboration mode
features except the automatic decision-making (i.e.,
order triggering). In this mode, partners collaborate
solely by sharing data, allowing better visibility in
the supply chain to foster better and more informed
decisions. Partners can consider the data shared with
them and adapt their processes; however, the system
does not trigger orders automatically for them, and
they are not expected to act on the shared data by
their partners. This mode is specifically useful as a
stepping stone towards the total collaboration mode,
as the latter can be seen as a big step that companies
are most of the time reluctant to take. It allows them
to try a lighter level of collaboration, which can
encourage them to transition to total collaboration
mode later. and indirect purchases. "Ending
Inventory" represents the value of the inventory that
the corporation still owned at the end of the period.
The amount of inventory consumed over the
specified period may be calculated by deducting the
value of ending inventory from the total of
beginning inventory and purchases. This calculation
is useful for evaluating the company's inventory
management strategies and can help with decisions
about future inventory levels.
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Fig. 6: Total collaboration algorithm
3.3.3 Transport Preparation Module
This module is responsible for transport preparation
for orders between the supplier and the warehouse,
as well as between the warehouse and the retail
store. The transport provider, who is a part of the
collaborative system, makes transport available
when goods are ready to ship. The transport
provider is notified beforehand so that the time
between transport availability and merchandise
readiness is minimal. In the beginning, this module
uses an estimated order preparation time. Afterward,
it uses the average order preparation time, which is
deducted from the list of order preparation times
recorded in the system. Figure 7 presents this
module’s algorithm.
Fig. 7: Transport preparation algorithm
The transport provider is notified of the nature,
the volume of the merchandise, the time the
transport needs to be ready, and the delivery
deadline.
3.3.4 Order Preparation Module
This module is responsible for tracking and
calculating order preparation time. Order
preparation starts when an order is assigned to order
pickers and consists of two phases:
- Picking: starts from the order assignment to
the reading of the order RFID tags by the
packing area's RFID reader, which means
delivery of the order to the packing area. The
algorithm for the picking submodule is
presented in Figure 8 below.
Fig. 8: Picking time tracking
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- Packing: It starts when an order's RFID tags are
read by the packing area’s entry RFID reader and
ends when they are read by the packing area’s
exit RFID reader.
-
Fig. 9: Packing time tracking
Then, it is concluded that the order is ready for
shipping. This procedure is presented in Figure 9.
3.4 User Interface Layer
The system is conceived in a web environment.
User interfaces are accessible using computers.
Users can be either system administrators,
managers, team leaders, or operators. The interface
displayed for each type of user is different
depending on their roles and privileges. System
access is granted following authentication.
Administrators have reading, writing, and system-
modifying privileges. Managers can access process-
related information.
4 Simulation and Results
To evaluate the proposed system against the
previous works in the literature, we have to define a
metric of comparison. Each work in the literature
chose a different metric to evaluate their proposed
system: inventory turn-over rate, inventory holding
costs, order processing costs, etc. In addition, the
results for each work are specific to its approach, its
objectives, the model of supply chain considered,
and the data used, which is in some cases
undisclosed. That is why, to compare the previous
systems with the proposed system, we first define
the supply model as the one shown in Figure 3, and
then we estimate, with the help of a time grid, how
much time each inventory replenishment step would
take. This allows us to have an estimate of how
much time each system would take to replenish
inventory concerning the others and would help
quantify the differences between each system.
Inventory replenishment times vary from one
supply chain to another and from one product to
another. Depending on the case, it can take days,
weeks, or even months. However, to simplify the
comparison between the systems, we will consider a
control scenario where an inventory replenishment
system that does not use RFID or IoT technologies
counts inventory by subtracting sales from the
existing inventory at the end of the work hours each
day. If the new inventory level is lower or equal to
the reordering threshold, the store submits an order
at the warehouse level and gets the order delivered
the next day after work hours. This means that
inventory replenishment in this control scenario
takes 24 hours.
This means that any improvement in inventory
replenishment time can make the order arrive inside
or before work hours. This means that the newly
available inventory can satisfy the demand that
comes after the order arrives at the store.
Table 3 shows the time estimations for each step
of the inventory replenishment process based on the
scenario mentioned before.
Table 3. Inventory replenishment steps’ time
durations based on the control scenario
Step
Description
Time
(H)
1
The time duration between hitting the
reordering point and being aware of it.
3
2
The time of formulating a purchase request
1
3
the time of formulating an order
1
4
the time to get approval and signatures on
documents
2
5
the time spent on reviewing the order before
submission
0,5
6
time spent on order submission and
confirmation
0,5
7
the time between the supplier receiving the
order and starting fulfillment
2
8
just in time order and transport preparation
(no delays)
1
Table 4 shows the time estimations for each step
of the inventory replenishment process for each
system type.
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Table 4. Estimated inventory replenishment time
durations by system type
Systems Type
Control system (h)
Just in time pick up
(h)
Easier inventory
monitoring (h)
Real-time inventory
(h) monitoring
VMI + IOT & RFID
(h)
Smart
Replenishment (h)
The proposed system
(h)
Previous
works
[14],
[15]
[10]
[11],
[12],
[13]
[16],
[17]
[18]
Inventory
replenishment
time durations per
step
1
3,0
3,0
1,0
0,0
0,0
0,0
0,0
2
1,0
0,0
0,0
0,0
0,0
0,0
0,0
3
1,0
0,0
0,0
0,0
0,0
0,0
0,0
4
2,0
2,0
2,0
2,0
0,0
0,0
0,0
5
0,5
0,5
0,5
0,5
0,5
0,0
0,0
6
0,5
0,5
0,5
0,5
0,5
0,0
0,0
7
2,0
2,0
2,0
2,0
0,0
0,0
0,0
8
1,0
0,0
1,0
1,0
1,0
1,0
0,0
Total
(h)
11,0
8,0
7,0
6,0
2,0
1,0
0,0
Since, in the literature, many systems eliminate
the time it takes to do the same steps (Table 1, Table
2), we will group them into one category, estimate
the time needed for each step considering the
proposed scenario, and calculate how much
improvement each system category makes
compared to the system that does not use RFID or
IoT technologies. This way, we can compare the
proposed system against the previous systems in
terms of inventory replenishment times
optimization.
For all the system types, we assume that they
have automatic document generation capabilities.
That is why for all types the time to generate a
purchase request and order is 0.
Table 3 serves as a grid to estimate how much
each system type optimizes the inventory
replenishment process by automating certain steps.
These estimations are based on the scenario and
parameters described below:
A retail store that is open to customers 10 hours
continuously from 8:00 am to 6:00 pm all days
of the month.
In the control scenario the normal time
between hitting the reordering point and
inventory replenishment is 24 hours. The
delivery arrives at 7:00 pm (after work hours)
of the next day which means it cannot be
purchased until the day after. This means that
in a case of stockout, the demand of the next
day is not satisfied and the store incurs lost
sales that day.
The time gap between hitting the reordering
point and making an order is estimated to be 11
hours. This means that while using the
proposed system the delivery should arrive 11
hours earlier at 8:00 am.
The time between the order’s arrival at the
store and the product’s availability on the shelf
is 0.
The store’s backend starts work at 7:00 am to
receive incoming deliveries and place the
products on shelves.
The store reordering point is 300 units and the
ordered quantity is 500.
3 non-consecutive demand datasets, month-
long each with different bursts of demand
patterns and strength.
The store average daily demand not accounting
for unpredictable demand bursts is 121 for
month 1, 130 for month 2, and 130 for month
3.
Demand is uniform throughout the day. If a
day’s demand is 120 units then in each hour out
of the 10 hours of work will be 12 units sold.
In the control scenario, the order is made at 7
p.m. after work hours and arrives the next day after
work hours at 7 p.m., which means that the
inventory can only be purchased the day after.
However, for each system type using RFID and IoT
technology to reduce the times in Table 3 and Table
4, the order arrives during work hours and can be
purchased right away. The bigger the optimization
the system offers, the earlier the new inventory will
arrive and the lower the lost sales will be in case of
a stockout. For example, systems in the real-time
inventory monitoring category can make orders
arrive 5 hours before the control scenario, which
means that the order arrives at 2 p.m.
We simulated with Microsoft Excel and VBA
based on the algorithm in Figure 6 for every system
type using the 3 demand datasets for each type.
Based on the simulation rules, no stockouts occurred
on the warehouse and supplier levels, so we will
focus on the retail store.
The goal of this simulation is to compare the
systems grouped by type against the proposed
system in terms of lost sales with 3 different
demand datasets. The results of the simulation with
dataset 1, dataset 2, and dataset 3 are shown in
Figure 10, Figure 11 and Figure 12, respectively.
WSEAS TRANSACTIONS on INFORMATION SCIENCE and APPLICATIONS
DOI: 10.37394/23209.2024.21.12
El Mehdi Mandar, Taoufiq Belhoussine Drissi,
Bahloul Bensassi, Najat Messaoudi, Wafaa Dachry
E-ISSN: 2224-3402
124
Volume 21, 2024
Fig. 10: Resulting lost sales per system type using
dataset 1
More technology adoption to optimize the
inventory replenishment steps the better the
reduction in lost sales.
Fig. 11: Resulting lost sales per system type using
dataset 2
The control system and the proposed system are
two extremes, with the control system using almost
no RFID or IoT technologies while the proposed
system adopts these technologies in every step of
the inventory replenishment process.
Fig. 12: Resulting lost sales per system type using
dataset 3
The 3 datasets used in this simulation have
random demand spikes with different magnitudes.
However, the results show consistency in how the
use of RFID and IoT technologies optimize the
inventory replenishment process and reduce lost
sales.
5 Discussion
The graphical representations in Figure 10, Figure
11 and Figure 12 show a clear connection between
the duration needed for replenishing inventory and
the effect on lost sales. The incorporation of
technology in inventory replenishment plays a
crucial role in decreasing inventory replenishment
durations and, as a result, lowering lost sales.
Among the discussed works, the smart
replenishment approach, as described in reference
[18], is notable for being the second most efficient
technique in reducing lost sales. This methodology
has notable efficiency, but, it is surpassed by the
proposed solution, which surpasses it by fully
eradicating the periods linked to each stage of the
inventory replenishment process.
The adoption of the proposed system produces
compelling outcomes, demonstrating its superiority
in optimizing inventory replenishment. Compared to
the control system, it shows a significant average
reduction of 68.66% in lost sales. This highlights the
significant influence of integrating RFID and IoT
technology into the supply chain, simplifying
procedures and guaranteeing a more prompt and
adaptable system. In a direct comparison with its
closest competitor, the smart replenishment system,
the suggested solution shows a significant 22.9%
reduction in lost sales. This margin of improvement
highlights the edge of the proposed system,
positioning it as an efficient frontrunner in inventory
replenishment within the context of unpredictable
demand patterns.
These findings confirm both the effectiveness of
the suggested approach and the practical advantages
of adopting sophisticated technology in the supply
chain. The deliberate elimination of time-consuming
inventory replenishment steps results in a notable
decrease in missed sales, hence improving the
overall efficiency of the supply chain.
6 Conclusion
While material flows are of the highest importance
in a supply chain, they are controlled by information
flows. That is why, companies and researchers alike
are looking for methods and ways to increase
visibility and collaboration in a supply chain.
IoT and RFID technologies are two of the main
technologies adopted to enhance visibility between
WSEAS TRANSACTIONS on INFORMATION SCIENCE and APPLICATIONS
DOI: 10.37394/23209.2024.21.12
El Mehdi Mandar, Taoufiq Belhoussine Drissi,
Bahloul Bensassi, Najat Messaoudi, Wafaa Dachry
E-ISSN: 2224-3402
125
Volume 21, 2024
supply chain partners. However, visibility and
collaboration are hardly quantifiable. For this
reason, we chose to evaluate the proposed system’s
inventory replenishment capabilities in terms of lost
sales when faced with unpredictable demand.
After dissecting the inventory replenishment
process into 8 steps that take significant time when
not adopting IoT and RFID technology. It became
clear that the more steps done with the help of IoT
and RFID technologies the lower the inventory
replenishment time. To compare the proposed
system with existing works in the literature. We
grouped the works that used these technologies to
optimize the same steps into one category and then
compared them against the proposed system.
Inventory replenishment is a process that
includes many steps (Table 1, Table 2 and Table 3).
These steps can be eliminated or done automatically
if RFID or IoT technologies are adopted. The more
steps done with the help of these technologies the
quicker the inventory replenishment process. While
the proposed system optimized all the steps in the
process of inventory replenishment (Table 1, Table
2 and Table 3), the previous systems in the literature
only optimized some of them
The results showed 22.9% less lost sales on
average using the proposed system compared to its
closest competition and 68.66% less lost sales on
average compared to the control case in which IoT
and RFID technologies are not adopted.
From a future perspective, we will work on the
development and employment of the system to
collect real-world data, as well as adjust the system
to the challenges that we might face in the
deployment phase if needed.
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El Mehdi Mandar, Taoufiq Belhoussine Drissi,
Bahloul Bensassi, Najat Messaoudi, Wafaa Dachry
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
- Conceptualization, methodology, simulation, and
writing El Mehdi Mandar.
- Taoufiq Belhoussine Drissi, Bahloul Bensassi,
Najat Messaoudi and Wafaa Dachry supervision
and validation.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
We hereby certify that this manuscript is an original
work and is not currently under review by any other
publication. No substantial part of this work has
been published or is under review elsewhere.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
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WSEAS TRANSACTIONS on INFORMATION SCIENCE and APPLICATIONS
DOI: 10.37394/23209.2024.21.12
El Mehdi Mandar, Taoufiq Belhoussine Drissi,
Bahloul Bensassi, Najat Messaoudi, Wafaa Dachry
E-ISSN: 2224-3402
127
Volume 21, 2024