Algorithms, Analytics and Artificial Intelligence - Harnessing Data to Make Supply Chain Decisions

This chapter discusses how data and information from operations across the supply chain can now be processed to support managers in making intelligent decisions. Specifically, we introduce the topics of Algorithms, Analytics, and Artificial Intelligence, which underpin such decision making. Beginning with some of the classical algorithms that were developed decades ago in Operations Research, we discuss how, today, decision making relies on increasingly massive amounts of data and highly sophisticated and powerful mathematical models. We show how an algorithm helps by either describing the world, forecasting it, or providing the decision-maker with prescriptive recommendations and suggestions to consider. To help readers wanting to dig deeper, we provide a bird’s eye view of the fields of Analytics and Artificial Intelligence. We give some examples of the most impactful current approaches, together with a brief overview of the mathematics involved. We then present possible paths in which these tools may transform how supply chains may work and be managed in the future. Most of the presentation aims at providing a brief introduction to the central topics. The intention is to spike interest for further reading. To that effect, a wealth of sources are provided for those who wish to dig deeper.