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The Egyptian International Journal of
Engineering Sciences and Technology
Vol. 32 (2020) 59–65
https://eijest.journals.ekb.eg/
An Intelligent Warehouse Management System Using the Internet
of Things
a a,b* a
Walaa hamdy , Noha Mostafa , Hesham Alawady
a Industrial Engineering Department, Zagazig University, Zagazig 44519, Sharkia, Egypt
b
Mechanical Engineering Department, The British University in Egypt, Shorouk City 11837, Cairo, Egypt
A R T I C L E I N F O A B S T R A C T
Keywords: Nowadays, the warehouse acts as a competitive factor in any supply chain as it has
st a main role in linking all the partners in it. Hence, it has become very necessary to
1 Internet of Things
nd
2 Warehouse Management allocate its resources efficiently and manage it effectively. A sound warehouse
System management system can contribute to cost reduction and improve customer
rd
3 Supply Chain satisfaction. However, traditional warehouse management system models have
become unsuitable and inefficient for today's market requirements. So, companies
have started to adopt innovative approaches and technologies to be used for such
applications; one of these technologies is the Internet of Things that enables the
connection between several physical objects and produces a massive amount of
real-time data that can be transferred to useful information that helps in managing
and decision making. In this paper, the architecture of this application is illustrated,
its potential benefits are overviewed, and a framework for implementing this
technology in a warehouse is proposed. This system can help in achieving more
control and monitoring on all the operations in the warehouse in real time, increase
speed and efficiency, and prevent counterfeiting and inventory shortage. The
proposed framework can be taken as a roadmap for enterprises to improve
warehouses by using the Internet of Things. Also, the benefits of implementing the
proposed framework and its challenges are proposed.
1. Introduction across the supply chain and make the supply chain
more agile [2].
Supply chain is consisted of all the processes, WMS is used for optimizing warehousing decisions
transformations and flows that are involved in by integrating many software systems that can
producing a product from raw material to the finished monitor, manage and control anything in the
product. "The supply chain consists of all parties warehouse [3]. ERP and APS systems are the most
involved directly or indirectly in fulfilling a customer popular systems used in warehouses. Nowadays these
request. The supply chain includes not only the systems cannot face the supply chain challenges such
manufacturer and suppliers, but also transporters, as agility, flexibility and responsiveness [4].
warehouses, retailers and even customers Traditional WMSs are become not able to face
themselves" [1]. Supply Chain Management (SCM) today's market challenges, enterprises now in need to
aims to meet customer requirements on time with the be more flexible and creative. Adapting IoT help
highest quality and lowest cost that can be obtained enterprises to face these challenges as it provides
by improving the process and achieving the linkage more flexibility and hence, improves the all
between them, removing non-value added activities performance of the enterprises.
________
* Corresponding author. Tel.: +2-01004242672
E-mail address: noha.mostafa@bue.edu.eg; namostafa@eng.zu.edu.eg
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Walaa hamdy,et. al / An Intelligent Warehouse Management System Using the Internet of Things
IoT make every object talk to each other through logisticians need to be more creative and flexible to
the internet by using many technologies. These help enterprises in facing these challenges. The five
technologies can be used in tracking, tracing, factors of future logistics are presented (automation,
monitoring and control. That can produce a massive economic sustainability, ecological sustainability,
amount of data that could be transferred to useful individualization and social sustainability) and the
information [5]. authors illustrated how industry 4.0, cloud computing
IoT can help in optimizing demand forecasting, and e-commerce help enterprises to overcome these
making an intelligent transportation system, and challenges. [12] Argued that traditional WMS cannot
creating an intelligent warehouse management meet today's challenges of market because of its low
system. efficiency. The author presented a study of a smart
In this paper, section 2 presented a review about WMS based on IoT and he founded that adapting IoT
how adapting WMS impact on supply chain and also has a great impacts on the warehouses as it helps in
how information sharing and implementing IoT in the improving the speed of the storage, reducing numbers
warehouse impact on it. Section 3 illustrates IoT of manual labors, simplifying the processes of
architecture and its building blocks. In section 4 the inventory, reducing error rate and costs and
impact of using IoT in supply chain, a framework improving the efficiency of the warehouse.
structure of using IoT in warehousing and the
expected benefits and challenged are presented. At 2.2. How Information Sharing and the use of IoT
the end a conclusion are presented in section 5. impact on demand forecasting and Supply Chain
2. Literature review In [13], the role of sharing information and is studied
with showing its impact on transportation activities.
2.1. How Adapting Warehouse Management System It was found that, it has a great role in increasing the
Impacts on Supply Chains transport efficiency, improving transport quality,
optimizing the driver's performance and decreasing
Adopting WMS have a positive impact on the transportation costs. In [14], a study was presented to
supply chain performance, for example, using know the impact of information sharing on the supply
Management Information System (MIS) and wireless chain; the authors found that information sharing
barcodes can achieve cost reduction, flexibility, across the supply chain is essential but not enough
inventory reduction, and delivery time reduction, thus and to make a significant improvement over the
achieve customer satisfaction [6]. supply chain, there should be more focus on
In [7], a framework based on RFID is proposed to strengthening the internal integration and cooperation
track work-in-progress, track inventory, and improve between partners and building the relationships on
picking and receiving goods in a wool yarn industry. trust between them by achieving tasks together.
In [8], the problem of inaccurate inventory was In [15], the authors studied the effect of using
studied that resulted from the bullwhip effect through some applications of IT such as business intelligence
the supply chain; the authors have studied the impact on the supply chain by proposing a hypothetical
of applying RFID on this problem and found that model. The two dimensions that were taken into
utilizing RFID in the upstream stages is less consideration were competitive advantage for
beneficial and efficient compared to when utilizing in resource-based view and service quality for market-
the downstream stages. In [9], the barcode based view. The authors found that although many
management application is used and discussed for the techniques, such as RFID, were recommended by
WMS of a pharmaceutical enterprise; the authors several researchers; most of enterprises do not realize
found that it helps in managing inventory, support the value of it. The hypothetical model presented can
decision making and decrease workforce costs, thus be considered as a roadmap for LSPs for improving
achieves improved overall performance. [10] their competitiveness. In [16], a simulation model
Presented a case study for digital WMS using RFID was developed to study the impact of participating
in tobacco industry, they founded that adapting RFID information about planning on inventory capital. The
help in achieving more inventory control, increasing information was; point-of-sales data, customer
efficiency of the operations, enhancing warehouse forecasts, stock-on-hand and planned order data.
utilization, reducing manpower, reducing loading They used the re-order point methods and found that
time and increasing inventory accuracy. According to the stock-on hand data has high value when the
[11] supply chains are facing unprecedented demand is stationary. Demand forecast data and
challenges and they need to be more dynamic. The planned order data have high value when the demand
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EIJEST Vol. 32 (2020) 59–65
is not stationary, and sharing point-of sales data has positive impact on the service and production sectors
no value whether the demand is stationary or not. and they help in improving the overall performance
All organizations seek to achieve competitive of them.
advantage and this can be reached when it understand In [25], an IoT-based model was proposed to
customer needs. Enterprises do this through solve the imperfect sharing of information problem
forecasting methods. [17] presented an overall view using RFID, and two methods of information inquiry
about forecasting and discussed the two methods of it were introduced for dynamic and static information.
(qualitative and quantitative), the authors argued that The methods introduced help in tracing, tracking, and
the data has a critical role in the two methods so it inspecting products at any stage anytime, hence
must be collected carefully with minimum error that improving quality, authenticity and increasing the
can be obtained using IoT as it provides a real- time efficiency of the supply chain. In [26], a framework
data that help in doing more accurate demand was proposed to illustrate how to improve SCM
forecast. [18] Presented a conceptual framework to performance by using IoT, especially supply chain
study the impact of IoT on the warehouse and innovation (SCI) using the integration between
founded that it; because of the availability of the resources, activities and processes that help in
accurate data that generated from IoT system, the improving the overall performance of all the supply
enterprises can improve their forecast and managers chain partners.
can take more accurate decision that help in
improving the company's' performance and make 3. About IoT Architecture
more profit. [19] Presented an interface
implementation for monitoring and controlling The architecture of IoT varies according to the
warehouse using IoT, the authers argued that the application where it is implemented; the four basic
device has a great role in monitoring products building blocks for implementing IoT are illustrated
location and the wireless sensors help in controlling in Fig. 1.
the environmental conditions such as temperature and
humidity. Thus, make warehouse more efficient,
reduce costs and increase the quality of materials. 1. Things
[20, 21, 22] confirmed that applying IoT in inventory, Using technologies 2. Gateways
warehousing operations and logistics has a major and such as RFID and Offer connectivity
a great impact on the warehouse. It help in aking actuators support between
warehouse more efficient as it help in tracking and Measure and collect things and the cloud.
managing information of the warehouse, tracing data about physical
everything in it, reducing manpower, increasing the objects in real-time.
efficiency of warehouse operations, reducing costs IoT
and improving the performance of the organization. Building
Blocks
[23] Presented an IoT quality inventory 3. Network 4. Cloud
management model for enterprises that called IIOT. infrastructure infrastructure
The model illustrated how item in the warehouse can Using technologies such Using technologies
as Aggregators, such as Virtualized
be easily identified and managed itself using IoT. The Gateways, Routers and Servers and Data
author argued that the proposed model can be used Repeaters. Storage Units.
for automation and demand forecasting as it provides Tracks control and It provides logical
provide security over and analytical
more accurate information that help in managing data flow from things to computing
enterprise's functions easily, reducing costs and make cloud. capabilities.
enterprises more efficient.
Since the evolution of IoT, the researchers have
studied and explored the using and impacts of Fig.1: IoT building blocks [27]
implementing this technology in several fields. But,
few researches showed its implementation in the field Many authors proposed different architecture of IoT,
of SCM. In [24], the authors investigated the role of
industry 4.0 factors on the service and production this is shown in Table 1.
sectors in a texile industry in Pakistan through a
survey questionnaire that collected data from
managers. The factors are b-g data, cyber-physical
system (CPS), smart factory, IoT and interoperability.
The author found that these factors have a significant
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Walaa hamdy,et. al / An Intelligent Warehouse Management System Using the Internet of Things
Table1. Architecture layers of IoT information to support decisions and improve total
performance.
Architecture Layers name and its objectives
layers
1) Perception layer: connect objects together Demand Manufacturing Inventory
and capture data using sensors and RFID. planning management
2) Network layer: act as a link between
Three layers perception layer and IoT hub using Improving
[28], [29] gateway, Wi-Fi and hub. Collecting visibility at
data by Improving
3) Application layer: responsible for the each step of
required services. In this layer every IoT visibility
the
application has different requirements. devices, production of
1) Sensing layer: identify, track and collect then demand.
data from objects using actuators and process. Preventin
analyzing
WSNs and RFID. Improving g stock
2) Network layer: act as a link between cloud and using efficiency and
it in out and
and objects. It transmit data to service scalability. inventory
various Enabling easy
Four layers layer using many protocols such as Zigbee shrinkage.
[30] and LoWPAN. forecastin and accurate Monitorin
g models
3) Service layer: It is responsible for breakdown g real-
collecting, exchanging, analyzing and that help prediction.
time
storing data to help in decision making in making Improving informatio
using Service management and analytics. accurate
4) Interface layer: deliver the output performance n of
demand and inventory
smoothly to the user.
1) Device layer: capture information from forecasts decreasing (Qin et al.
(Yerpude 2017).
objects using sensors and actuators. ingredient
and waste (Anita
2) Network layer: provide connectivity
from/to nodes using internet, WSNs, etc. Singhal and Abhinav
Four layers 2017 ).
3) Service layer: act as a link between 2017).
[31] application and network layer.
4) Application layer: provides interaction Warehousing
methods for user according to his request
using many technologies such as mobile Transportation
applications. Supply Provide
Chain collaboration
Improving between
4. Implementing IoT in Supply chain collaboration shelves and
between products that
carriers, Customer depends on
4.1. Impacts of applying IoT in Supply Chain shippers and
customers. Service the product
Making intelligence
service more Enhancin concept,
According to literature, IOT has a significant role in agile. g where a
improving and enhancing the performance of all Reducing relations product can
functions of SCM. [32] Descried the functions of hazards and hip with communicate
SCM as production, purchasing, routing, inventory, disruption. customer its location
distribution, location and marketing. All of these Providing through Solving
functions have the ability to benefit from users with real-time security and
implementing IoT. These benefits are shown in Fig. relevant communi authenticity
2. The improvement of the warehouse could be information cation. problems.
in real-time Improvin Improving
measured through the speed to satisfy customers' (Schoen e al, g decentralized
needs, decreased non value added activities and 2016). competiti management
effective management [33, 34]. So, warehouses veness (Richards
should be adapted to achieve this improvement. (Ives et 2017).
al, 2016).
Implementing IoT in warehousing ensures a positive
impact as it could be used to provide a real-time data
about all processes and functions. IoT can eliminate Fig.2: Benefits of implementing IoT in supply chain [18]
manual interferences and make everything connected
to provide a vast amount of data from these
connections which can be translated to important
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