The impact of information sharing on EOQ and total cost of loT and blockchain-based inventory management: A comparative analysis
Prerna Jain
Gitarattan International Business School, Guru Govind Singh Indraprastha University, Delhi, Zip-110078, India
Poonam Rani
Gitarattan International Business School, Guru Govind Singh Indraprastha University, Delhi, Zip-110078, India
DOI: https://doi.org/10.59429/ima.v2i2.9050
Keywords: IoT-based inventory management; blockchain-enabled supply chain; economic order quantity (EOQ); total cost (TC) optimization; sensitivity analysis
Abstract
With the changing scene of supply chain management, the implementation of intelligent technologies like the Internet of Things (IoT) and blockchain has added new dimensions to inventory optimisation. The current paper offers comparative mathematical analysis of IoT-based and blockchain-based models for inventory under a finite planning horizon, based on principal performance parameters: Economic Order Quantity (EOQ) and Total Cost (TC). Sensitivity analysis is performed to analyze the effect of key parameters like data precision, demand, and implementation expense on both the models. Results show that IoT-based model delivers higher EOQ but lower costs when data precision is increased and thus is optimal for agile forecast-oriented environments. Conversely, the blockchain-based model, although more expensive to set up, provides more stability and tracing capabilities in decentralized and trust-sensitive supply chains. A realistic example is provided to show the cost-performance trade-offs of both models under normal business circumstances. The findings inform decision-makers in choosing technology as a function of strategic objectives, and the research concludes with suggestions on the development of hybrid models and field testing.
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