Optimal Supply Chain Inventory Decision Using Artificial Neural Network

For years, researchers and practitioners have primarily investigated the various processes within manufacturing supply chains individually. In current global competitive market, enterprises must set up an efficient supply chain and network to cut cost efficiently. Each company aims to supply the right quantity of products to clients in right place and at right time with right cost evaluation. Each supplier must respond to the short life-cycle and quick response need for the terminal.In this study, we construct a supply chain framework with hybrid inventory decisions of supply chain numbers to consider the impact factors of the total supply chain cost. This paper develops an intelligent-agent system to simulate supply chain system. Artificial neural network (ANN) is used to derive the optimal inventory policies. We examine the performance of the optimal inventory policies by cutting costs and increasing supply chain efficiency. The proposed inventory decision using intelligent-agent and artificial neural network provides managerial insights on the impact of the decision making in factory, wholesaler, distributor and retailer.