Application of Internet of Things (IoT) in Inventory Management for Perishable Produce

Abstract

The emerging multiple sales channels and the more demanding customers are making the produce market very competitive nowadays. Inventory management for perishable produce has been very challenging due to its limited shelf life. Businesses are struggling to provide variety of fresh produce with high customer service and at a reasonable price. The development of Internet of Things (IoT) technologies provides a way to track the transportation and storage conditions of produce in real time and can thus improve the inventory management to reduce cost and increase customer satisfaction. In this paper, an application methodology of IoT in inventory management of perishable produce is introduced. The methodology proposes to use an Artificial Neural Network (ANN) algorithm to create a sorting and pricing mechanism for perishable produces according to their quality status provided by IoT. The methodology aims to minimize the total soilage cost with improved customer satisfaction. A case study is discussed to demonstrate the feasibility and potential benefits of the methodology.