Revolutionizing the Demand-Driven Supply Chain

Abstract

The application of AI in the demand-driven supply chain is changing significantly the way businesses forecast their demand and manage their inventory. In the same context of the book, which emphasizes the transformative potential of generative AI and ML in supply chains, this chapter explores how these technologies revolutionize supply chain management and presents the impacts of these technologies in DDSC.The aim of this chapter is to explore, through a literature review, how AI is transforming supply chain management by using particularly ML, and to analyze the current state of their applications in demand driven supply chain, highlighting the key algorithms used, their practical implementations, and the benefits and challenges associated with their adoption. This chapter reveals that AI and ML significantly enhance forecasting accuracy, optimize inventory management, improve decision-making and operational efficiency. It also emphasizes key ML algorithms such as regression approaches and time series in predicting more accurate forecasts from historical data analysis.