Integrated Internet of Things with Blockchains for Vendor-Management Inventory System

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Integrated Internet of Things with Blockchains
for Vendor-Management Inventory System
Nageswara Rao Atyam1, Ramesh Babu P2, P.Ponmurugan3, L. Sahaya Senthamil4, P. John
Augustine5, A. Govindarajan6
1Assistant Professor, Department of Electrical and Electronics Engineering, CMR Institute of Technology,
Bengaluru. India.
2Associate Professor, Department of Computer Science, College of Engineering & Technology,
Wollega University, Nekemte, Ethiopia.
3Associate Professor, Department of EEE, Sengunthar Engineering College, Tiruchengode, Tamil Nadu, India.
4Professor, Department of Electrical and Electronics Engineering, PSNA College of Engineering and Technology,
Dindigul, Tamil Nadu, India.
5Associate Professor, Department of Computer Science and Engineering, Sri Eshwar College of Engineering,
Coimbatore, Tamil Nadu, India.
6Associate Professor, KL Busines s School, Koneru Lakshmaiah Educational Foundation, KL University, Green
Fields,Vaddeswaram, Guntur, Andhra Pradesh, India.
nageswararaoaty am@gmail.com1, rameshbabup81@gmail.com2, murugan.pmsm@gmail.com3, elsahayam@gmail.com4,
pjohnaugustine@gmail.com5, agrajan1972@gmail.com6
Abstract In recent era, the supply chain
management is becoming a complex valued
network that offers a major competitive
advantage over logistics and supply chain
management. Despite its advantages, the
complexity is becoming a challenge that should
provide verification of sources, maintaining
product visibility and monitoring while moving
via s upply chains. The adoption of Internet of
Things (IoT) can support all these movements that
tends to track and monitor the activities of the
products moving in the chain network. Such
optimization enables the operations to get
optimized that includes manufacturing,
warehousing and transportation. In addition, the
transparency of the s upply chains can be
maintained via blockchain and when combined
with IoT, it increases the effectiveness and efficacy
of the supply chain
Keywords: Internet of Things, BlockChains,
Inventory System, Supply Chain
1. Introduction
Vendor-managed inventory (VMI) is a highly
prevalent management strategy for the supply chain
(SC) in order to improve SC performance while
establishing mutual benefits between a vendor and a
retailer. The key concept underlying VMI is that the
seller is allowed to s upervise a retailer's inventory, so
that the seller can follow the retailer's agreed stock,
monitor and fill in. VMI is an enhanced inventory
management approach that enables both retailer and
vendor to check the availability and movement of
goods across the entire SC in a seamless and accurate
way. In the Wal-Mart relationship with Procter &
Gamble, VMI was initially introduced as a key
feature and has become widely adopted by numerous
sectors since then [1].
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The implementation of VMI techniques could have
considerable advantages for all the SC network
participants [2]. For suppliers, VMI provides the
visibility needed for improved demand forecas ts and,
hence, better stock management. VMI provides
merchants with a more effective order process ing
framework while decreasing operating and
administrative costs. In addition, VMI can offer
major benefits to upstream SC members. For
example, producers can more precisely forecast how
much they can create and so accomplish better
ordering and delivery. For the SC VMI in general,
inventory overvolume and inventory shortages have
been minimized, retail interactions are enhanced, and
the end-us er experience is improved.
Although VMI has been a popular strategy for
improving SC performance, not all deployments of
VMI are effective. There are several problems and
requirements for deploying a VMI model
successfully [3–6]. Formalized paraphraseSC
complexity and the difficulties of sharing knowledge
and opportunistic behavior among key SC
participants are of particular concern. Other key VMI
implementation obstacles may concern the security
risks associated with system integration and the costs
associated with the administration of SC
intermediates and the VMI processes concerned.
2. Background
The use of such technologies like IoT, AI, blockchain
transforms modern SC networks into entire digital
ecos ystems, facilitating the collaboration of inclusive,
trustworthy, integrated, and long-lasting corporate
solutions [11] and [12].
Blockchain Technology
Among the most recent developments in blockchain
technology is the concept of smart contracts [15],
which enable the capacity to do calculations within
the blockchain, thereby acting as a decentralised
virtual computer that can be accessed by anyone. The
use of blockchain technology is expected to
transform SC management in a number of ways [13]-
[17]. The characteristics of blockchain and smart
contracts described above could be applied to a wide
range of challenges in the field of SC management.
Internet of Things (IoT)
Modern SC networks are being reshaped by the
Internet of Things revolution, which has far-reaching
ramifications and offers significant economic
opportunities. It is believed that the IoT will be helps
to bridge the gap between various characteristics of
modern SC networks, application of multiple
applications, and real-time services. Using Internet of
Things -enabled infrastructures, any item can be
connected to the Internet, facilitating the interchange
of information among a large number of devices
[21]-[23].
The majority of IoT architectures are composed of
three layers: the perception layer, the network layer,
and the application layer [24]. Applications based on
the Internet of Things have become more popular in a
variety of industrial settings [25]-[26]. There is a
plethora of VMI-related material available in the SC
domain [7, 8]. However, as previously said, there are
still a number of obstacles and constraints that must
be overcome in order for it to be successfully
implemented. Furthermore, VMI deployment has so
far been seen through the lens of an operations
management perspective, but concerns of trust,
visibility, and security across SC networks have
received little attention to this point. Furthermore,
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only a few papers [9, 10] have looked into the
deployment of blockchain technology in VMI
applications. However, it is important to note that
both research considers only a single pair of SC
participants, but real-world VMI implementations
require several buyers to connect with multiple
vendors.
Only a small number of studies have used the
blockchain in VMI applications [9]. This paper
proposes an innovative interaction framework for
vendor and buyer relationships that is based on smart
contracts and distributed ledger technology. A
usecase VMI scenario is described, along with a
functional smart contract that may be used in the
situation. It is important to note that both research
considers only a single pair of SC participants, but
real-world VMI implementations have several
customers interacting with multiple vendors. A
blockchain-enabled architecture for VMI
implementation is proposed in this study, which takes
into account the restrictions outlined above and
allows for the interaction of numerous vendors with
multiple customers through functional smart
contracts.
3. Proposed Method
Figure 1 depicts a block schematic of the proposed
system, which represents the system under
consideration. An overview of the supply chain
management workflow is shown here, which includes
analysing the availability of products on-farm before
notifying local shops for transportation which is
performed to maintain transparency while reducing
the surplus or deficit quantity of food items.
Over the last few decades , the supply chain has
worked to decrease costs, clear warehouses , and
reduce inventory. Yet, the majority of the difficulties
have arisen as a result of stores running out of
inventory. As a result, it is vital to track the supply of
food from farms to stores in order to avoid a shortage
of certain food items.
In order to conduct this research, it is required to use
Internet of Things (IoT) devices in farms in order to
monitor the availability of items across a number of
farms. The study also incorporates blockchain
technology to transport and supply these items from
farms to local shops, allowing for more efficient
management of customer demand and supply. It is
anticipated that the application of these two
revolutionary technologies will enable the most
efficient management of the food supply chain
between farmers and local shops, ultimately reducing
the amount of food that is in excess or deficit.
The tracking of products helps to increase the
transparency and accuracy of goods as they move
through the local supply chain. The creation of
mobile applications or the embedding of technology
into various mobile applications will benefit users in
that they will be informed about the food items that
are available from a certain company, so enabling
them to make informed decisions . The integration of
IoT with blockchain in the food supply chain
provides greater transparency for businesses in their
interactions with customers.
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Figure 1: Proposed Method
The demand for provenance information is increasing
as a result of increased regulatory and consumer
pressure. Improved traceability, on the other hand,
increases value by lowering the high expenses
associated with quality problems, such as recalls,
reputational harm, and income losses from black-or
grey-market items. Blockchain will, in turn, exploit
the information from IoT devices with respect to all
of the conditions and monitored data and provide it to
the local shop owners or customers in order to
determine their specific requirements. The
blockchain embedded with machine learning
technology makes decisions on how to manage the
excess or deficit amount of products if there is a
surplus or deficit of those things.
Using real-time monitoring of goods via a
smartphone application, which allows both local store
owners and users to track the products, the
transparency and accuracy of goods moving through
the local supply chain is increased.
In this study, it is hypothesised that the use of these
two technologies will result in an ideal food supply
chain between farms and local stores between farms
and local shops. It will be successful in maintaining
the price of things, so preventing the over-pricing of
items or the stocking of large amounts of products by
illegal providers.
The application of a cluster algorithm in a group of
nodes is the subject of this investigation. Each cluster
selects one cluster head from among its members.
The cluster heads must be nodes with a maximum
number of neighbors, allowing the cluster heads to be
grouped together to provide the greatest amount of
network coverage possible. If numerous nodes are
next to the same number, the cluster is assigned a
random number from the pool of available numbers.
At the end of the process , the cluster head node with
the greatest number of cluster members is selected.
It is essential that a node serving as a cluster head is
kept up to date and has sufficient capacity to handle
blocks and transactions efficiently. The blockchain is
managed by cluster heads, which is why the Overlay
Block Manager was created. Transactions and
transaction blocks must be generated, confirmed, and
API
Blockchain
Supply chain
management
Consensus
Algorithm for
Stock Prediction
and Availability
IoT sensors
Data
preprocessing
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saved in order for blockchain administration to be
effective. It's important to remember that the
blockchain is an untrustworthy system in which there
is no trust in its nodes.
As a result, the members of the cluster keep an eye
on the actions of their Overlay Block Manager. The
cluster members desire a new Overlay Block
Manager where a transaction is not forwarded to
another Overlay Block Manager if there is any
misconduct on the part of one of the cluster members.
According to the findings of the investigation,
measures for dealing with errors such as those that
were made are in place.
The blockchain records all of the interactions that
occurred during the transaction.When compared to
transactions transmitted, data packets can be routed
over an overlay network in the most optimal paths,
which can be found here. For transaction data
packets, the Overlay Block Manager identity of the
recipient is necessary in order for the Overlay Block
Manager to route the packet to the correct
destination. This decreases the amount of time spent
exchanging data. The transaction that corresponds to
the information sent between overlay nodes includes
the signed data has h generated by the transaction
generator, which helps to assure data integrity.
Each transaction is saved in LSB chains, which are
linked together. The IoT data is saved off-chain in
order to reduce the number of overhead packets and
the amount of blockchain capacity required. Each
Overlay Block Manager retains the trusted rate of the
other Overlay Block Manager, as well as the time
stamp for the final Overlay Block Manager block, for
the duration of the session.
a. Transactions and blocks
For overlay node transfers, digital signatures,
asymmetrical encryption, and cryptographic
encryption are all used to protect the data. A
transaction containing m of n signatures, with n m
and n and m being s ignature numbers, is valid if and
only if n m and n and m are valid. The following is a
diagram of the transaction structure:
PTID∥TID || PK∥output∥sign∥metadata
TID- transaction identifier
PTID- previous transaction pointer.
With the use of an overlay node, the two transactions
that will be audited are linked together. The public
key is preceded by the contract generator, which is
signed using the public key. The signed transaction
identifier (TID) is used to s ign a transaction. For
transactions, the public key and the other nodes (n-1)
are displayed before the result field is displayed. It is
important to note that only m signatures are required
for the transaction to be deemed genuine. The output
field contains the hash of the public key that will be
utilised by the generator for the next transaction in
the chain.
The following node-generated transactions mus t be
evaluated since each new transaction is modified by
the public key without the transaction details being
included in the modification process. The fields
shown above are critical in ensuring that a transaction
is considered genuine. Therefore, new fields may be
defined based on the application's requirements and
requirements.
A block is made up of several transactions, and it is
feasible to hold up to Tmaxtransactions in a single
block of transactions. A single block with a Tmaxvalue
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greater than Tmaxfor more transactions has an impact
on the blockchain output in that particular block. The
two most important components of each block are the
block headers and the transactions. The following is
found in the block header:
PBID || BID || BGenerator∥Bverifier s
BID- block content hash.
PBID- previous block hash.
Attempting to modify an already-stored transaction
results in the block hash being inconsistent with the
next block, so making the attack more visible.
However, the contract will not be valid in
transactions until all m of n nodes involved in the
transaction have signed the contract and the
transaction has completed. Following that, the
transaction will be disbursed among the parties
involved. In order to remedy the iss ue, a list of public
keys that are capable of gaining access to members of
the cluster has been kept. This list primarily consists
of a simplified access control list for Overlay Block
Manager.
If a key in the list of public keys for a particular
transaction corresponds to a key in the Overlay Block
Manager's list of public keys , the Overlay Block
Manager will tell the members of its cluster about the
transaction. In order to protect the participant from
hos tile Overlay Block Managers who can track
transactions back to an individual member of the
cluster who is broadcasting different trans actions,
radio transactions are transmitted within the cluster to
protect the participant from hostile Overlay Block
Managers who can track transactions back to an
individual member of the cluster who is broadcas ting
different transactions.
If one of the public keys in the incoming Y operation
corresponds to a key list item, the Overlay Block
Manager can route the transaction to the cluster
member who previously uploaded the key to the
public keys list, allowing the transaction to be
completed more efficiently. The account will be
handed to any other Overlay Block Manager who
wishes to use it. Already-pending transactions are
saved in each Overlay Block Manager transaction
pool, while transactions that are currently in progress
are deleted. When the operating pool reaches
Tmaximum, the Overlay Block Manager process is
invoked, which initiates the method of creating a new
block using a distributed time-based consensus
algorithm, as described above.
b. Consensus ML algorithm
The report recommends a cons ensus algorithm based
on time ML consensus as the foundation. There is a
protection against malicious block generators th at
create new blocks on a regular basis. Before
constructing a new block, each overlay block
manager must wait for a random amount of time,
referred to as the period of waiting, in order to
maintain randomization amongst block generators.
In order to prevent overlay block managers from
claiming that there is a little waiting time, the next
MOs track the rate at which an overlay block
management produces new blocks at the start of the
wait. If the number of blocks surpas ses the limit set
by the programmers at Blockchain for the
framework, the overlay block managers reduce the
built-in block of the neighbouring block. Considering
that each overlay block manager has a unique waiting
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time, it is possible to generate an entirely new
overlay block manager block that contains a few or
all of the transactions in the overlay block manager's
Transaction Pool that is now in development.
In this instance, the overlay block management has
the ability to delete the transactions from its pool,
which were previously saved on the blockchain by
another overlay block manager. The notion that
overlay block managers must wait at random also
restricts the number of redundant blocks that can be
generated at the same time as a single redundant
block. The maximum waiting duration on the overlay
network is two times as long as the maximum waiting
period on the main network. It is possible to connect
all other overlay nodes to the block chain after a new
block has been produced.
At the same time, numerous nodes will construct a
block and send it to the network, resulting in the
creation of a fork in the blockchain network. There
are two pathways that are segregated within this
blockchain. It is necessary to utilise this concept in
order to manage the fork in the majority of current
blockchains.
The amount of time that the overlay block manager
can spend creating blocks is limited. Because of this,
only one block can be created in a consens us-based
interval in order to avoid the possibility of hostile
overlay block managers generating many blocks with
fraudulent transactions, referred to as an
accompanying attack with a restricted time. Remote
management has the ability to adjust the length of the
contract. The total value for consensus time is 10
minutes, which corresponds to the period between
Bitcoin mining operations. According to each overlay
block management, the frequency of blocks produced
by the other overlay block managers is being tracked.
4. Results and Discuss ions
The findings of the data protection analysis in the
suggested model are presented in this section. The
study is assessed in the context of five different
attacks: Different metrics like delay, over-control,
data reliability, block reliability, data integrity, and
residual energy are estimated for the study. The
findings are assessed with s everal privacy
attacks, including machine learning and deep
learning, against all of the parameters between the
suggested approaches. Total supply completed by the
method data is illustrated in Figure 2 where the
proposed data is accurate. This was because each
block is assessed at all times by the suggested
method.
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Figure 2. Total Supplies Completed
Figure 3 displays the overall comparison of the
overload prediction by the blockchain of s everal
control messages and by the block mobility. The
findings show that the suggested technique has low
overhead control, because the control messages
transmitted by blocks are tiny and when the mobility
is slow, the overhead lowers.
0
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400000
600000
800000
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Total Supplies Completed
Total data packets during transactions
ML DL without BC BC Proposed
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Figure 3. Control overhead
Figure 4 shows the results of the mean final delay of
several assaults on the suggested model. Becaus e of
reduced overhead control, improved block reliability,
and confidence in the high results, the results are
achieved.
0
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Prediction overload
Total data packets
ML
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Figure 4. End to End delay
The residual energy reveals that the proposed method
has been compared between various privacy attacks
in Figure 5. The outcome is that, even if there is a
data protection assault on the system, the method
provided obtains more residual energy.
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End to end delay (ms) 103
Total Packets
ML DL without BC BC Proposed
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Figure 5. Residual energy
Figure 6. Block reliability
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Packets Transmitted
ML DL without BC
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Block Reliability (blocks/sec)
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ML DL without BC BC Proposed
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In Figure 6, the dependability of blocks w.r.t to block
number is shown, and the findings reveal that all
attacks are more reliable than the proposed method.
When the data is moved between blocks, Figure 7
displays the integrity of the data. The results reveal
that the approach propos ed achieves excellent data
integrity by encrypting and decrypting all privacy
assaults using the manner proposed.
Figure 7. Data Integrity
5. Conclusions
The integration of blockchain technology and IoT can
open up new potential to improve the integrity of the
supply chain and increase operational performance.
At the same time, new challenges may arise from
technologies. For instance, a blockchain offers the
advantage of immutability, a key attribute.
Immutability can, however, be considered a n egative
trait for several reasons, which are the drivers of the
current interest in constructing blockchains.
Therefore, further academic research is needed to
study, explain and strictly predict various application
scenarios. This includes applying academic theories
to obtain more insight into why certain events are
present.
The increased complexity of IoT infrastructure leads
the blockchain to manage increasing volumes of data
requiring great scalability. Beyond geographical
borders, this research implies that research in several
segments has to be operationalized, developed and
adapted by other researchers to various research
contexts.
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Packet Integrity (Packets/sec)
Number of Transmitted packets
ML DL without BC BC Proposed
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