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Artificial Intelligence and IoT Integration in Supply Chains: A Strategic Framework for Smart, Adaptive, and Sustainable Operations
Abstract
This chapter explores the convergence of Artificial Intelligence (AI) and the Internet of Things (IoT) in transforming supply chain operations for sustainability. It presents a layered framework where smart sensors, GPS trackers, and RFID devices collect real-time data, processed through AI/ML algorithms to drive optimization in logistics, inventory, and resource management. Case studies in agriculture and retail demonstrate significant improvements in yield, fuel savings, and carbon emission reductions. The framework emphasizes a feedback loop for continuous learning, enabling adaptive and resilient supply chain systems. The chapter also discusses ethical, regulatory, and interoperability challenges, proposing future research directions including blockchain integration and Edge AI. It serves as a comprehensive guide for researchers, practitioners, and policymakers aiming to build smart, data-driven, and sustainable supply chains.
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