Integration of IoT & Blockchain Using AI for Optimizing Multi-Echelon Inventory System
Tanmay Sharma, Manish Kumar Ojha · 2025
Efficient inventory control in multi-tier systems is critical to increasing operational performance and lowering costs. The introduction of new technologies such as IoT, Blockchain, and AI is a viable strategy to deal with the complexities of these systems. This study presents a unified system that uses blockchain technology for safe data exchange and automated processes, IoT for real-time inventory tracking, and artificial intelligence (AI) -more especially the reinforcement learning algorithm Proximal Policy Optimization (PPO) - for cost optimization and demand forecasting. By integrating these technologies, the study suggests a system that reduces holding and ordering expenses, enhances decision making, and increases visibility across various levels of the supply chain. Simulation results show significant improvements in cost-effectiveness and inventory management.In addition to cutting expenses and improving operational efficiency, this article tackles sustainability by decreasing waste, lowering the carbon footprint through accurate demand forecasting, and improving resource efficiency in multi-tier systems. This model highlights the potential of Industry 4.0 technologies to transform traditional supply chain systems.