Impact of Internet of Things (IoT) on Inventory Management: A Literature Survey

Abstract

Background: The advancement of Industry 4.0 technologies has affected every aspect of supply chains. Recently, enterprises have tried to create more value for their businesses by tapping into these new technologies. Warehouses have been one of the most critical sections in a supply chain affected by Industry 4.0 technologies. Methods: By recognizing the role of inventory management in a supply chain and its importance, this paper aims to highlight the impact of IoT technologies on inventory management in supply chains and conducts a comprehensive study to identify the research gap of applying IoT to inventory management. The trend and potential opportunities of applying IoT to inventory management in the Industry 4.0 era are explored by analyzing the literature. Results: Our findings show that the research on this topic is growing in various industries. A broad range of journals is paying particular attention to this topic and publishing more articles in this research direction. Conclusions: Upgrading a supply chain into an integrated supply chain 4.0 is beneficial. Given the changes in fourth-generation technology compared to previous generations, the approach of conventional inventory replenishment policies seems not responsive enough to new technologies and is not able to cope with IoT systems well.