{"id":14560,"date":"2021-07-15T10:00:30","date_gmt":"2021-07-15T08:00:30","guid":{"rendered":"https:\/\/www.tradecloud1.com\/?p=14560"},"modified":"2021-07-15T19:16:23","modified_gmt":"2021-07-15T17:16:23","slug":"ai-case-study-2-efficient-inventory-management-using-artificial-intelligence","status":"publish","type":"post","link":"https:\/\/tradecloud.hdnk.nl\/en\/ai-case-study-2-efficient-inventory-management-using-artificial-intelligence\/","title":{"rendered":"AI case study 2: Efficient inventory management using Artificial Intelligence"},"content":{"rendered":"


\nThe Business Problem
\n<\/b><\/h2><\/div>

A major challenge for manufacturing companies is to know what, when, where and how much stock should be ordered and kept. SME\u2019s traditionally calculate this manually using Excel, Google Sheets or other software solutions. These solutions can be automated to an extent and are fairly adequate in most cases. However, these traditional solutions are subject to human error and are based on the capabilities of the employee. As a result, human error can lead to wrong estimates and over\/understock.<\/p>\n<\/div>

The Solution<\/b><\/h2><\/div>

AI-powered inventory management<\/a> can provide a solution to human error by letting the computer do the math (TradeGecko, 2019). But how could an AI application make the inventory management process more efficient?<\/p>\n

Determining the right amount of stock, in the right place, at the right time at the right costs as well as the right price. That is what inventory management is about in business terms and could be determined automatically by the AI application. This is done by combining datasets, developing a Machine Learning model and continuously training the model to achieve higher levels of accuracy over time. The outputs of the model reflect the most optimal decisions that can be taken.<\/p>\n<\/div>

Example
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Coca Cola uses artificial intelligence for the inventory management of their cabinet coolers in retail outlets. The AI tool has been trained to recognize, identify and count the different Coca Cola products in the coolers.<\/p>\n

The tool could combine this data with information received from demand forecasting (link to Rob\u2019s business case), and automatically calculate an order to restock. Consequently, the retailer is offered a delivery choice. Additional information is also given on predicted demand for a cooler, with the aim of providing additional service and increasing Coca Cola\u2019s sales (Supply Chain 247, 2017).<\/p>\n<\/div>

Benefits<\/b><\/h2><\/div>

Coca Cola uses artificial intelligence for the inventory management of their cabinet coolers in retail outlets. The AI tool has been trained to recognize, identify and count the different Coca Cola products in the coolers.<\/span><\/p>\n

The tool could combine this data with information received from demand forecasting (link to Rob\u2019s business case), and automatically calculate an order to restock. Consequently, the retailer is offered a delivery choice. Additional information is also given on predicted demand for a cooler, with the aim of providing additional service and increasing Coca Cola\u2019s sales (Supply Chain 247, 2017).<\/p>\n

Several key benefits for the use of AI in inventory management are:<\/p>\n