AI-driven approaches for sustainable inventory management in grocery retail

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bachelor_Ilcheva_Snejana_2025.pdf (423.8 KB)

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School of Business | Bachelor's thesis
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Date

2025

Department

tieto

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Mcode

Degree programme

bute

Language

en

Pages

43+7

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Abstract

Grocery supply chains are under great pressure due to the large amount of food waste generated globally, resource scarcity and perishability. Inventory management in particular plays a key role in both preventing food waste and supporting the profitability of retailers. Digitalization and the development of artificial intelligence offer new opportunities to optimize inventory management processes and improve their sustainability. This literature review examines six AI-based models that have the potential to improve the efficiency and sustainability of grocery retail inventory management. The review focuses on three areas of inventory management: demand forecasting, inventory control, and inventory classification and visibility, and what role artificial intelligence could play in improving them. The main challenges for retailers can be considered the large number of per-ishable food products they handle, and the impact of potential errors in handling these products on the profitability and creation of food waste. Based on the review, AI-based models can streamline inventory management processes, which in turn can reduce the amount of food waste. However, the implementation and use of artificial intelligence are associated with challenges, such as technical, ethical, and organizational barriers. In addition, AI-based models are most suitable for larger retailers with strategic and organization readiness as well as sufficient resources.

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Thesis advisor

Movarrei, Reza

Keywords

artificial intelligence, food retail, food waste, inventory management

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https://urn.fi/URN:NBN:fi:aalto-202602012252

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[kand] Kauppakorkeakoulu / BIZ (Open Access)