Impact of Artificial Intelligence on Demand Forecasting and Inventory Planning
Abstract
Artificial Intelligence (AI) has proved to be a revolutionary paradigm in supply chain management, especially regarding demand forecasting and inventory planning. Existing forecasting systems, which depend to a large extent on historical data as well as linear statistical methods, often tend to be inadequate to handle uncertain demands, dynamic markets, as well as unpredictable consumer behaviour. However, adoption of various AI-based methods, such as machine learning, deep learning, big data analytics, etc., helps organizations handle large amounts of real-time data, uncover unknown patterns, as well as provide more accurate forecasts of demands. This research paper presents a critical analysis of the effects of adoption of AI on demand forecasting, as well as inventory management, as a method to discuss various emerging trends of AI in these areas. This research work concludes that adoption of AI results in effective accuracy of forecasts, minimization of costs associated with inventory, as well as increased sensitivity of supply chains.
Authors
Mr. Ashish Diwakar, Ayush Kumar, Gautam Kumar, Shubhi Rani, Ankit Kumar, Vishal Kumar
Institution
NIET Business School, Greater Noida
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