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Internet of things for perishable inventory management systems: an application and managerial insights for micro, small and medium enterprises

Author

Listed:
  • Pratik Maheshwari

    (National Institute of Industrial Engineering)

  • Sachin Kamble

    (EDHEC Business School)

  • Ashok Pundir

    (National Institute of Industrial Engineering)

  • Amine Belhadi

    (Cadi Ayyad University)

  • Nelson Oly Ndubisi

    (Qatar University)

  • Sunil Tiwari

    (ESSCA School of Management)

Abstract

Micro, Small, and Medium Enterprises (MSMEs) operating in the food retailing sector encounter two main concerns with respect to their perishable inventory management system, i.e., the product’s shelf life and investment in warehouse monitoring systems. New technologies like the Internet of Things (IoT), automated inventory control platforms, and automatic storage and retrieval systems offer effective solutions to these issues. However, MSMEs are reluctant to adopt these technologies due to their prior perception of higher implementation costs and the expected benefits. The present study aims to optimize IoT implementation in MSMEs’ inventory management systems and to provide tangible proof of its feasibility and usefulness. In so doing, we propose a mathematical model and analyze the impact of IoT through two case studies. The model provides a cost–benefit analysis of IoT investments that aim to increase products’ shelf life. We adopted the fractional program method, solved by particle swarm optimization on MATLAB software. The findings demonstrate the positive correlation between adopting IoT and reduced inventory costs supporting IoT deployment for improved perishability performance in MSMEs. The study offers several insights and practical guidelines in considering IoT deployment in MSMEs.

Suggested Citation

  • Pratik Maheshwari & Sachin Kamble & Ashok Pundir & Amine Belhadi & Nelson Oly Ndubisi & Sunil Tiwari, 2025. "Internet of things for perishable inventory management systems: an application and managerial insights for micro, small and medium enterprises," Annals of Operations Research, Springer, vol. 350(2), pages 395-423, July.
    • Handle: RePEc:spr:annopr:v:350:y:2025:i:2:d:10.1007_s10479-021-04277-9
    DOI: 10.1007/s10479-021-04277-9
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    References listed on IDEAS

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