Simulation-based assessment of IoT-functionality in perishable dairy products

Raid Al-Aomar and Abdallah Dweekat

European Journal of Industrial Engineering, 2021, vol. 15, issue 6, 852-875

Abstract: This paper presents a framework for simulation-based assessment of next-generation IoT-enabled supply chains with a focus on perishable dairy products. The framework integrates real-time data capturing with supply chain modelling and dynamic performance management. The concept of complex event processing (CEP) is utilised to implement IoT functionality. The aim is to reduce waste and losses caused by outdated items, shortages, and inventory discrepancies. The approach is illustrated through a simulation of dairy products perishability in a three-echelon supply chain. Simulation experiments were used to assess the impact of enabling two IoT functionalities; adjusting quantities distributed to retailers based on shelf-life and moving dairy products amongst retailers based on the proximity of their expiration. Simulation results have shown substantial improvement in both economic and operational KPIs of dairy products perishability. Results were also used to trade-off the percentage of expired milk and the inventory fill-rate. [Submitted: 6 August 2020; Accepted: 1 December 2020]

Keywords: simulation modelling; supply chain performance management; internet-of-things; product perishability; dairy products. (search for similar items in EconPapers)
Date: 2021
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