The Role of Artificial Intelligence in Supply Chain Optimization
Author(s): Ishita Malhotra¹, Kunal Chopra², Rohan Mehta³
Affiliation: 1,2,3Department of Management Studies, Delhi Institute of Business Management & Technology , New Delhi, India
Page No: 11-16-
Volume issue & Publishing Year: Volume 2 Issue 3,March-2025
Journal: International Journal of Modern Engineering and Management | IJMEM
ISSN NO: 3048-8230
DOI:
Abstract:
Supply chains have become increasingly complex due to globalization, market volatility, and rapid shifts in consumer demand. Traditional optimization methods are no longer sufficient to address these challenges, creating the need for advanced digital technologies. Artificial Intelligence (AI) has emerged as a transformative tool in supply chain management (SCM), offering capabilities in predictive analytics, demand forecasting, inventory optimization, logistics planning, and risk management. This paper examines the role of AI in supply chain optimization by reviewing state-of-the-art applications, evaluating their benefits, and analyzing challenges related to implementation. Findings suggest that AI-driven supply chains achieve improvements of 15–25% in forecast accuracy, 20–30% in inventory cost reductions, and up to 40% in logistics efficiency, positioning AI as a critical enabler of competitive advantage in modern business management.
Keywords:
Artificial Intelligence, Supply Chain Management, Optimization, Forecasting, Logistics, Business Analytics
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