How Machine Learning Will Transform Supply Chain Management
It does a better job of using data and forecasts to make decisions. by Narendra Agrawal, Morris A. Cohen, Rohan Deshpande and Vinayak Deshpande
Summary.
The Covid-19 pandemic, the Russia-Ukraine conflict, trade wars, and other events in recent years have disrupted supply chains and highlighted the critical need for businesses to improve planning in order to be more agile and resilient. Yet companies struggle with this challenge. One major cause is flawed forecasting, which results in delivery delays, inventory levels that are woefully out of sync with demand, and disappointing financial performance. Those consequences are hardly surprising. After all, how can inventory and production decisions be made effectively when demand forecasts are widely off?