AI in Inventory Management: Applications, Challenges, and Opportunities

Abstract

Abstract: This paper delves into the multifaceted role of Artificial Intelligence (AI) in inventory management, encompassing its applications, challenges, and future opportunities. AI's integration into inventory management systems has revolutionized supply chain operations, enhancing efficiency, accuracy, and decision-making processes. The paper explores various AI applications, including demand forecasting, stock optimization, and automated reordering. However, it also acknowledges the challenges in AI implementation, such as data quality, interpretability, and model transparency. The research highlights the synergy between AI and emerging technologies like the Internet of Things (IoT), pointing towards new innovative solutions that were unimaginable in the past. In conclusion, the paper presents a balanced view of AI's transformative impact on inventory management, emphasizing both its current benefits and the hurdles that need to be overcome for its successful integration. Furthermore, this comprehensive analysis not only provides insights into the current state of AI in inventory management but also sheds light on its promising future, marked by efficiency and technological advancement