The Impacts of AI and ML on the Performance of Logistics and Supply Chain Management

Abstract

Digital transformation is not a goal, but the benefits that businesses achieve from digital transformation are the desired goal. The successive developments in artificial intelligence technology represent a great opportunity to solve business problems. Artificial intelligence, especially machine learning methods, can be used to solve many problems facing the logistics and supply chain sector. Machine Learning (ML) techniques widely impact on many aspects of Logistics and Supply chain Management such as improving services levels for end customers, reducing costs, minimizing resource waste, and improving partners relationships.  The problem of demand forecasting is one of the problems that affect production scheduling, inventory levels, partner costs, and customer satisfaction. Therefore, this research addresses these topics in some detail and provides a practical application to solve the research problem using some machine learning methods and tools. The research confirmed the accuracy of predictions and thus improved decisions and partner plans in supply chains. The research represents an analytical addition to previous research in the same field.