What are the pros and cons of using AI for inventory forecasting?
Inventory forecasting is the process of estimating the future demand and supply of products based on historical data, market trends, and other factors. It is crucial for administrative managers to optimize inventory levels, avoid stockouts or overstocking, and reduce costs and waste. However, traditional inventory forecasting methods and models, such as moving averages, exponential smoothing, or regression analysis, may not be able to capture the complexity and uncertainty of the current business environment. This is where artificial intelligence (AI) can offer a competitive edge. AI is the ability of machines or software to perform tasks that normally require human intelligence, such as learning, reasoning, and problem-solving. In this article, we will explore the pros and cons of using AI for inventory forecasting, and how you can implement it in your organization.