This study examines the use of artificial intelligence (AI) and Internet of Things (IoT) in operations management, namely inventory management. Operations management is crucial to maximizing productivity and net operational profit for enterprises. The global shift to industrial revolution 4.0, AI and IoT’s crucial roles is the main focus. AI and IoT are useful for demand forecasting, real-time tracking, and risk management in inventory management in supply chain management. Inventory risk management, demand forecasting, and real-time tracking are the main issues of this study. The real-time tracking emphasizes responsiveness, timeliness, adaptability, and speed. Supply Chain Risk Management (SCRM) classifies hazards by their impact on supply chain network levels and subsets. The analysis reveals that, due to the combination of AI and real-time tracking technology, supply chain management has advanced, especially in inventory management. IoT integration in modern supply chain management enables proactive issue resolution, early barrier discovery, and fast response to real-time data, improving logistics operating efficiency.