Changing the Odds
Blackjack – the most popular casino card game in America, in Vegas $10,000+ is lost to the house every day. With a house edge of less than 3% the odds waiver in favor of the forfeiture of the gambler’s wager. What does it take to sway the odds? Hollywood’s shown us a fantasy of MIT masterminds and genius savants leveraging the odds in their favor. For most, overcoming the gambler’s fallacy is simply an illusion and Lady Luck is our best chance at hitting 21.
While going, “All in!” is nothing more than a risk with high return, investing in AI Demand Forecasting for manufacturing guarantees a systematic advantage to the user over current in-house processes. This advantage can be aggressively more substantial with current users seeing up to 60% improvements in forecasting accuracies.
Similar to card counting – creating a spreadsheet database to accurately forecast demand is unfeasible. The data required, is all there, however, the connections and fluid algorithms to make sense of that data are too complex. You need to consider seasonality, external events, sales promotions, unpredictable purchasing patterns. Additionally, every product will have a different set of variables that affect its order rates.
Artificial Intelligence creates bridges across the voids of unpredictability in forecasting. By using 14 leading forecasting models the software identifies the best algorithm on a SKU-level basis. Users can feed the models relevant 3rd party data, such as seasonality, promotions, and stock exchange rates to find positive correlations with external data.
AI Demand Forecasting removes best-guess scenarios from the equation and allows the user to focus on taking action from their data’s insights. Stop manipulating antiquated spreadsheets and start improving your operational efficiency.