AI-based demand forecasting models: A systematic literature review

Abstract

In today's dynamic and competitive manufacturing landscape, accurate demand forecasting is paramount for optimizing production processes, reducing inventory costs, and meeting customer demands efficiently. With the advent of Artificial Intelligence (AI), there has been a significant evolution in demand forecasting methods, enabling manufacturers to enhance the accuracy of the forecasts. This systematic literature review aims to provide a comprehensive overview of the state-of-the-art on demand forecasting models in the manufacturing sector, whether AI-based models or hybrid methods merging both the AI technology and classical demand forecasting methods. The review begins by establishing an overview on demand forecasting methods, it then outlines the systematic methodology used for the literature search. The review encompasses a wide range of scholarly articles published up to September 2023. A rigorous screening process is applied to select relevant studies. Accordingly, a thorough analysis in the basis of the forecasting methods adopted and data used have been carried out. By synthesizing the existing knowledge, this review contributes to the ongoing advancement of demand forecasting practices in the manufacturing sector providing researchers and practitioners an overview on the advancements on the use of AI models to improve the accuracy of demand forecasting models.

Keywords

• demand forecasting
• forecasting models
• artificial intelligence
• supply chain
• systematic literature review