Exploring Machine Learning Applications in Supply Chain Management

Author(s):

  • Luh Putu Eka Yani (Sampoerna University)
  • I Made Alan Priyatna (Faculty of Engineering & Technology, Sampoerna University)
  • Ammar Aamer (Faculty of Engineering & Technology, Sampoerna University)
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Abstract:
In the current technological era, the rise of disruptive innovations is affecting the way industries run their operations. The disruptive impact of digitalization processes and the highly constant growth of sensible data are changing the very fabric of supply chain management. Disruptive technology offers innovative ways to tackle some of the main traditional approaches in the supply chain. Machine learning, which is viewed as disruptive technology, recently has evolved rapidly to optimize the process and efficiency in supply chain management. Machine learning could be applied in several stages of supply chain management from planning to the distribution process. In this paper, we explored and examined the literature of multiple machine learning algorithms and their application in the supply chain management, focusing on the demand forecasting stage since this the first and most important step of supply chain management. A total of 57 articles related to machine learning and demand forecasting were retrieved from ScienceDirect, Taylor and Francis, and Emerald databases. The result showed that the machine learning algorithm performs better than the traditional demand forecasting model. Moreover, neural network and support vector regression algorithms are among the most potential and applicable algorithms to implement in demand forecasting. The practical implication of this paper is in exposing the current machine learning issues in the industry to help stakeholders and decision-makers better plan corrective actions.
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@inproceedings{oscm-2019-486,
  title={Exploring Machine Learning Applications in Supply Chain Management},
  year={2019},
  author={Luh Putu Eka Yani and I Made Alan Priyatna and Ammar Aamer},
  booktitle={Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019},
  doi={10.31387/oscm410205}
}
Luh Putu Eka Yani, I Made Alan Priyatna, Ammar Aamer (2019). Exploring Machine Learning Applications in Supply Chain Management. In Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019. https://doi.org/10.31387/oscm410205