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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM67364

AI-POWERED SMART INVENTORY AND PROCUREMENT SYSTEM: A MACHINE LEARNING FRAMEWORK FOR PHARMACEUTICAL AND BEAUTY PRODUCT DISTRIBUTION

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM67364

Volume:

10 |

9 |

Sep 2026

Pages:

1-6

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM67364

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

Sanket Ashok Chothe

Sanket Ashok Chothe

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Aarti Dinkar Chopade

Aarti Dinkar Chopade

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Vaibhavi Anantrao Banarase

Vaibhavi Anantrao Banarase

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Rishika Gajanan Kause

Rishika Gajanan Kause

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Roshani Sanjayrao Ganesar

Roshani Sanjayrao Ganesar

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Pratik Dipak Hore

Pratik Dipak Hore

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Mentors

Dr. A. D. Raut

Dr. A. D. Raut

Computer Science & Engineering

P R Pote Patil College of Engineering and Management, Amravati

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Abstract

For distributors of pharmaceutical and beauty products, day-to-day efficiency and profitability depend heavily on how well inventory is managed, particularly because these product lines carry a limited shelf life, unpredictable customer demand, and suppliers whose delivery times are not always consistent. Conventional stock-control setups, built around fixed reorder thresholds and manual, spreadsheet-based tracking, generally cannot anticipate shifts in demand, factor in supplier lead time, or warn staff about products nearing expiry — gaps that translate into stock-outs, cash tied up in surplus inventory, and preventable losses from expired goods. This paper puts forward the design of an AI-Powered Smart Inventory and Procurement System that unifies machine-learning-driven demand forecasting, lead-time-sensitive reorder recommendation, automatic purchase-order generation, expiry tracking, OCR-based digitization of supplier invoices, and anomaly detection inside a single ERP-style web platform. Architecturally, the platform pairs a React.js front end with a Spring Boot back end over REST APIs, while a separate Python/FastAPI microservice houses the AI logic, all backed by a PostgreSQL database. The overall aim is to turn historical sales, stock, and purchasing records into forward-looking guidance, moving inventory decision-making away from a reactive stance and toward a proactive one.

KEYWORDS

Artificial Intelligence Inventory Management Demand Forecasting Procurement Automation Predictive Analytics Supplier Lead Time Expiry Monitoring OCR Anomaly Detection ERP.

Cite This Article

Sanket Ashok Chothe, Aarti Dinkar Chopade, Vaibhavi Anantrao Banarase, Rishika Gajanan Kause, Roshani Sanjayrao Ganesar, Pratik Dipak Hore, Dr. A. D. Raut, "AI-POWERED SMART INVENTORY AND PROCUREMENT SYSTEM: A MACHINE LEARNING FRAMEWORK FOR PHARMACEUTICAL AND BEAUTY PRODUCT DISTRIBUTION," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 9, pp. 1-6, Sep 2026. https://doi.org/10.55041/IJSREM67364

Full Article/Conclusion

Planned next steps include IoT-based smart shelves for sensor-driven stock updates, RFID tagging for tracking at the item level, blockchain-based record-keeping across the supply chain, more advanced deep-learning forecasting models, real-time analytics on supplier performance, cloud deployment across multiple warehouses, a companion mobile app, and ongoing automated model retraining. These limitations reflect where the project currently stands; once the remaining modules are completed, integrated, and thoroughly tested, a full evaluation of the system's functionality, security, evaluation accuracy, performance, and scalability will be possible.

References

[1]    G. Princz, F. Reisacher, and S. Erol, “AI-based Procurement System: Optimization of Material Ordering and Inventory Management in Volatile Markets,” Procedia CIRP, vol. 134, pp. 873–878, 2025. [2] A. K. Vadaga, U. R. Dokuburra, H. Nekkanti, A. K. A. E. Reddy, S. D. V. S. R. A. R. M. Sekhar, and A. P. D. N. Ram, “Digital transformation in pharmaceuticals: The impact of AI on supply chain management,” Intelligent Healthcare Systems, vol. 1, Art. no. 100008, 2025. [3] D. Stalin David, N. Siva Virhush, V. Ajay, H. Kalai Selvan, and S. Manikandan, “AI-Driven Inventory and Demand Forecasting System with Automated Supplier Communication and Trend Analysis,” IJERT, vol. 15, no. 4, pp. 576–582, 2026. [4] D. Ni, Z. Xiao, and M. K. Lim, “A Systematic Review of the Research Trends of Machine Learning in Supply Chain Management,” Intl. J. Machine Learning and Cybernetics, vol. 11, no. 7, pp. 1463–1482, 2020. [5]   M. Kohli, “Supplier Evaluation Model on SAP ERP Application Using Machine Learning Algorithms,” Intl. J. Engineering & Technology, vol. 7, no. 2.28, pp. 306–311, 2018. [6] V. H. Wilson, A. Prasad N. S., A. Shankharan, S. Kapoor, and J. Rajan A., “Ranking of Supplier Performance Using Machine Learning Algorithm of Random Forest,” IJARET, vol. 11, no. 5, pp. 298–308, 2020. [7]   P. Srijaroon, P. Chiadamrong, and S. Krittanai, “A Supervised Learning-Based Supplier Classification Model for Supplier Performance Evaluation Problem in SAP ERP,” Thai J. Operations Research, vol. 9, no. 2, pp. 43–58, 2021. [8]   A. R. Vila-Parrish, J. S. Ivy, and R. E. King, “A Simulation-Based Approach for Inventory Modeling of Perishable Pharmaceuticals,” in Proc. 2008 Winter Simulation Conference, pp. 1532–1538, 2008. [9] K. Khanchandani, A. Thakur, A. Shetty, C. Reddy, and R. Behera, “Automated Invoice Data Extraction: Using LLM and OCR,” arXiv:2511.05547, 2025. [10]  P. D. Patel, “Design and Implementation of an OCR-Powered Pipeline for Table Extraction from Invoices,” arXiv:2507.07029, 2025.

Editorial & Review Transparency

Publication Date

9/19/2026

Peer Review Type

Double-Blind Peer Review

Review Rounds: 2

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