EVALUATING THE STRATEGIC ROLE OF AI IN ENHANCING SUPPLY CHAIN PERFORMANCE THROUGH DEMAND FORECASTING

Abstract

Demand forecasting plays a critical role in supply chain planning, inventory management, and customer satisfaction. Traditional forecasting techniques often fail to capture complex demand patterns caused by market volatility and consumer behavior. Recent advances in artificial intelligence (AI) have enabled more accurate and adaptive demand forecasting models. This paper examines the strategic implications of AI-enabled demand forecasting on supply chain performance. The proposed framework integrates machine learning models with historical sales and operational data to improve forecast accuracy. Experimental analysis demonstrates that AI-based forecasting significantly reduces inventory costs, improves service levels, and enhances operational efficiency. The findings highlight AI-enabled forecasting as a strategic capability that strengthens supply chain resilience and competitiveness. The study provides valuable insights for organizations seeking data-driven supply chain transformation.