Transformative Role of Artificial Intelligence in Supply Chain Management

EasyChair Preprint 12931

Abstract

Artificial Intelligence (AI) is revolutionizing the landscape of supply chain management, offering unprecedented opportunities for efficiency, agility, and innovation across various facets of the supply chain. This abstract delves into the transformative impact of AI technologies, particularly generative AI, on critical components of supply chain management, including demand forecasting, inventory optimization, logistics planning, and supplier management.

Demand forecasting lies at the core of supply chain operations, guiding production, procurement, and distribution decisions. Traditional forecasting methods often fall short in capturing complex demand patterns and market dynamics. However, AI-powered predictive analytics leverage vast datasets, including historical sales, market trends, and external factors, to generate accurate demand forecasts. Generative AI algorithms, equipped with machine learning capabilities, continuously refine models, enabling organizations to anticipate demand fluctuations with unprecedented precision.

Inventory optimization is another area where AI excels, enabling businesses to strike the delicate balance between minimizing inventory holding costs and ensuring product availability. By analyzing historical data, real-time sales, and supply chain dynamics, AI algorithms identify optimal inventory levels, reorder points, and safety stock parameters. Furthermore, generative AI facilitates scenario analysis, simulating various demand scenarios and supply chain disruptions to devise robust inventory strategies adaptable to dynamic market conditions.

Keyphrases: Artificial Intelligence, Demand Forecasting, Generative AI, Supply Chain Management

@booklet{EasyChair:12931,
  author    = {Dylan Stilinski and Louis Frank and Lucas Doris},
  title     = {Transformative Role of Artificial Intelligence in Supply Chain Management},
  howpublished = {EasyChair Preprint 12931},
  year      = {EasyChair, 2024}}