artificial intelligence – OM in the News

AI Is Revolutionizing Demand Forecasting

Demand forecasting is at the very core of operations management.

In simple terms, a forecast is a projection or prediction about some future point in time based on underlying assumptions. Demand forecasts—what we project customers will want—range from short-term (operational) to long-term (strategic) and help organizations plan for variables such as production capacity, labor, raw materials, packaging, and transportation needs.

The question isn’t whether demand planning is important or essential. The question, rather, is how to have more accurate forecasts so that […]

By James Kirby Easterling|2023-03-12T11:18:36+00:00March 12, 2023|Tags: artificial intelligence, demand management, forecasting, inventory, lean, strategic capacity planning, waste|

Neuralink Implant Moving Toward Human Trials

Elon Musk hopes coin-sized computer implants may soon bring sight to the visually impaired and movement to the paralyzed.

However, the first project for his Neuralink Corporation is to win approval for a brain-computer interface (BCI) to be tested in humans. This technology could help someone who, for instance, had a stroke to be able to communicate with their thoughts, making the neuronal spikes from the brain readable by a computer.

Testing has been going on for a while, but human trials […]

By Lisa M. Spencer|2023-01-11T17:21:16+00:00January 11, 2023|Tags: applied research, artificial intelligence, product design, product life cycle, research and development, technology|

How Digital Data Enables Strategic Fit

While Carhartt traces its roots back 133 years, the company is now implementing digital tools (cloud, analytics, artificial intelligence, etc.) to improve its overall supply chain operations.

To implement process improvements, data must be timely, accurate, and relevant. A common expression amongst operations leaders: for something to be “meaningful” it also needs to be “measurable.” Hence the requirement for real-time data analytics.

Carhartt continues to improve its operational capabilities—for example increasing factory automation—as a means to further enhance a differentiated business strategy […]

By James Kirby Easterling|2023-01-04T07:24:05+00:00January 8, 2023|Tags: analytics, artificial intelligence, automation, data mining, inventory management, logistics, MRP, operations strategy, strategy, supply chain mapping, warehouse|

Restaurant Pricing Tactics

Inflation is hitting restaurants especially hard on the supply side, as they are paying more for ingredients and increased labor costs. From the revenue side, customers impacted by inflationary pressures on food and gasoline are reducing their spending for eating-out.

The combination of increased costs and reduced revenues serves to reduce restaurants’ profit margins.

Restaurants have to seek ways to maintain customer traffic, while still maintaining profit margins. Two techniques gaining popularity are dynamic pricing and barbell pricing.

Dynamic pricing, also referred to as […]

By Ross L. Fink, Ph.D.|2023-01-02T06:03:36+00:00January 1, 2023|Tags: aggregate planning, artificial intelligence, dynamic pricing, forecasting, inflation, inventory, pricing, restaurant, yield management|