IoT-Integrated Smart Inventory Management System for Real-Time Demand Forecasting in Retail Operations

Abstract

Inventory management is very important in retail stores, and it affects the availability of goods, efficiency, and customer satisfaction. Retailers face many challenges, ranging from overstocking, stock-outs, late inventory updates, and ineffective demand forecast analysis, among others. Such challenges are expected to result in increased operational expenses and poor business performance as well. As a result, many retail businesses are now increasingly adopting modern technology in order to effectively manage their inventories. In this regard this study presents an IoT based Smart Inventory Management System as a solution for demand forecasting in retail firms. The proposed framework uses the application of RFID, I nternet of Things sensors and cloud monitoring to closely monitor inventory management and stock levels. This framework allows the analysis of the previous sales trend and current inventory management information to improve the future product prediction for demand, and also, the use of automation in monitoring improves inventory management and enables better decision making.