Adaptive demand planning models: Utilizing reinforcement learning to address contingencies and dynamic market conditions in supply chains

Aniketh reddy Musugu *

Supply Chain Manager.
 
Research Article
International Journal of Science and Research Archive, 2024, 13(02), 840-851.
Article DOI: 10.30574/ijsra.2024.13.2.2210
Publication history: 
Received on 07 October 2024; revised on 12 November 2024; accepted on 15 November 2024
 
Abstract: 
There are remarkable opportunities in supply chain management associated with using the reinforcement learning (RL) approach in demand planning. As opposed to numerous other techniques, such as modeling and forecasting and applying them over a certain period, RL allows for the making and adapting these decisions in real-time, depending on the current demand and other conditions in the market. Supplementary to this, RL-based models enable supply chains to constantly adapt to shifts since they directly update knowledge from incoming data, making them less susceptible to economic shocks or other supply uncertainties. This flexibility is particularly important for contemporary supply chains in uncertain global environments where conventional, deterministic demand planning techniques cannot address changing needs. In this research, we discover how RL-based models could reduce demand volatility and react to contingencies. As such, it is best suited for industries that are required to respond flexibly and faster. This paper enlightens RL on the benefits of demand planning. It provides live examples that give insight into how it may be used to improve inventory, reduce cost, and improve decision-making. Regarding the specific research questions, this study helps investigate the methodologies, evaluation metrics, and case outcomes that shape RL's potential for changing demand planning and improving supply chain adaptability for future research on adaptive supply chain management.
 
Keywords: 
Internet of Things; Reinforcement Learning; Big Data; Demand Planning; Data-Driven Optimization
 
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