Advantages and Disadvantages of Artificial Intelligence in Supply Chains

Subject: Research Report: Advantages and Disadvantages of Artificial Intelligence in Supply Chains
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Research Report

Advantages and Disadvantages of Artificial Intelligence in Supply Chains

Prepared for

Professor Adrienne Vanthuyne
Fanshawe University
COMM 6019-41

Prepared by

Veronica Aldrey

November 28th 2016

Table of Contents

Executive Summary        3

Introduction        4

Defining Artificial Intelligence        5

Agent-Based System        5

Genetic Algorithms        5

Expert Systems        6

Competitive Advantage        6

Inventory Control and Planning        7

Transportation Network Design        7

Purchasing and Supply Management        7

Demand Shaping, Planning, and Forecasting        7

Supply Chain Management Job Qualifications        8

Unemployment        8

Unique Human Qualities        8

Unique Artificial Intelligence Qualities        9

Trust in Technology        9

Loss of Control        10

Ethics        10

Conclusion        10

Discussion and Recommendation        11

References        12

List of Illustration

Figure 1 Artificial Intelligence Revenue by Region 2015-2014………………………………….4

Figure 2 Link between popular AI tools and their SCM applications areas……………………...6

Research Report
Advantages and Disadvantages of Artificially Intelligence in Supply Chain

Executive Summary

Artificial Intelligence (AI) began 60 years ago and it has recently been a trending topic in the business world. Digitization is changing the world and the rules of business competition. Therefore, this report analyzes the advantages and disadvantages of artificial intelligence in supply chain management.