Transforming Supply Chains Through AI: Demand Forecasting, Inventory Management, and Dynamic Optimization

Abstract

This paper explores how Artificial Intelligence (AI) is transforming supply chain management through demand forecasting, real-time inventory management, and dynamic optimization, using insights from McKinsey's 2023 report. AI-based solutions such as machine learning and digital twins have led to significant improvements in logistics costs, inventory levels, and service delivery. The paper emphasizes the strategic importance of aligning AI implementations with business goals to tackle supply chain complexities effectively. Case studies highlight successful AI applications across industries, illustrating the impact on decision-making, transparency, and resilience in supply chains.