Integrated Smart Warehouse and Manufacturing Management with Demand Forecasting in Small-Scale Cyclical Industries

Yuk Ming Tang, George To Sum Ho, Yui Yip Lau, Shuk Ying Tsui

Research output: Journal article publicationJournal articleAcademic researchpeer-review

12 Citations (Scopus)


In the context of the global economic slowdown, demand forecasting, and inventory and production management have long been important topics to the industries. With the support of smart warehouses, big data analytics, and optimization algorithms, enterprises can achieve economies of scale, and balance supply and demand. Smart warehouse and manufacturing management is considered the culmination of recently advanced technologies. It is important to enhance the scalability and extendibility of the industry. Despite many researchers having developed frameworks for smart warehouse and manufacturing management for various fields, most of these models are mainly focused on the logistics of the product and are not generalized to tackle the specific manufacturing problem facing in the cyclical industry. Indeed, the cyclical industry has a key problem: the big risk which high sensitivity poses to the business cycle and economic recession, which is difficult to foresee. Despite many inventory optimization approaches being proposed to optimize the inventory level in the warehouse and facilitate production management, the demand forecasting technique is seldom focused on the cyclic industry. On the other hand, management approaches are usually based on the complex logistics process instead of integrating the inventory level of the stock, which is very crucial to composing smart warehouses and manufacturing. This research study proposed a digital twin framework by integrating the smart warehouse and manufacturing with the roulette genetic algorithm for demand forecasting in the cyclical industry. We also demonstrate how this algorithm is practically implemented for forecasting the demand, sustaining manufacturing optimization, and achieving inventory optimization. We adopted a small-scale textile company case study to demonstrate the proposed digital framework in the warehouse and demonstrate the results of demand forecasting and inventory optimization. Various scenarios were conducted to simulate the results for the digital twin. The proposed digital twin framework and results help manufacturers and logistics companies to improve inventory management. This study has important theoretical and practical significance for the management of the cyclical industry.

Original languageEnglish
Article number472
Issue number6
Publication statusPublished - Jun 2022


  • cyclical industry
  • demand forecasting
  • genetic algorithm
  • inventory optimization
  • roulette wheel
  • smart manufacturing
  • smart warehouse

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Computer Science (miscellaneous)
  • Mechanical Engineering
  • Control and Optimization
  • Industrial and Manufacturing Engineering
  • Electrical and Electronic Engineering


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