Whether it is inventory management, demand planning, or logistics network routing, deep learning, and neural networks are the future of supply chain management.
FREMONT, CA: By now, the supply chain should be no stranger to technology. Firms are well on their way with the implementation of Industry 4.0 tech. Technology is the way forward for a resilient supply chain. Here is a look at how the combination of deep learning (DL) algorithms and the artificial neural networks power are set to have some major effects on the supply chain of this fourth industrial revolution.
Deep learning is the subset of machine learning that deals with generating the algorithms that power neural networks. ANNs are adaptable systems of neurons comprising of algorithms that communicate with each other in complicated ways. These interactions have been connected to those between the neurons in the brain, hence using the concept neuron. They learn by taking in data and processing it through the DL algorithms in the configuration. These are the same algorithms that charge natural language processing systems and the smartphone's voice recognition circuit. They are also the same algorithms that manage the filtering used on social media.
Neural networks can return more precise insights, based on all available data, in record time. This is down to the several interactions between algorithms that take in and process varied data streams. This differs from the prevalent creation of machine learning algorithms with a single input resulting in a single output. Planners have enough on their hands without managing the results of an inaccurate manual demand forecast. When users let the algorithm parse past customer purchasing habits, present market trends, and even weather patterns, because of the multiple inputs, users can run the algorithms for fresh insights that enable them to adapt and pivot on a moment's notice to keep up with the consumers and ahead of the competitors. But deep learning and neural networks have strengths like adaptability and pattern recognition are prime instances.
Since ANNs work on the same model as the human brain, which has been studied for years, one can break down the operations and inner workings to a level that any audience can understand what went on to generate the insights they're now using to optimize their supply chain.