Topics In Demand
Notification
New

No notification found.

Unlocking Efficiency: Harnessing the Power of AI for Resource Optimization
Unlocking Efficiency: Harnessing the Power of AI for Resource Optimization

November 28, 2023

64

0

Resource optimization is a crucial practice for economic efficiency, sustainability and success of a system and integration of technology, particularly AI has immensely contributed towards these goals. The concept of resource optimization is applicable in almost every sector. For instance, prediction of demand to manage inventory level, automating mundane tasks, analyzing patterns to mitigate potential risks, optimizing energy consumption and identifying areas of inefficiencies to minimize waste, etc. Thus, reaching the point of equilibrium in production process seems plausible now with the application of AI.

Let’s explore how AI can revolutionize resource management across different sectors:

  1. AI for pricing strategy: AI-based pricing models can increase revenue by adjusting prices as per demand, supply and market trends to maximize profits.
  2. Precision farming: AI can be used to assess soil quality, plan the right amount of fertilizers & manures and plant accordingly. This would increase crop yields and minimize the potential harms to the crops.
  3. Healthcare resource allocation: Forecasting patient admission rates, monitoring the patients using AI can improve patient care and reduce waiting times, thus enhancing the overall operational efficiency.
  4. Process automation: Automating repetitive tasks would not only boost production but also minimize errors. By doing so, human effort can be put to other more creative work.
  5. Predictive analysis and demand forecasting: Using historical data to create forecasts and understanding how resources would be allocated by the organizations for the customers. To get a better understanding of such optimization process, let’s take a closer look at how inventory optimization is taking place with the help of AI.

Consider a retail firm which manages sales ordering of goods from suppliers. The usual approach involves utilizing historical data and optimizing truck shipments (packaging, size, timings). However, relying on manual process could lead to problems like too high or too low stock levels, locked dead money, and lack of control and so on. This is where the application of AI becomes crucial.

An AI-powered optimization platform can deliver highly accurate sales forecast using historical data and relevant constraints, all without requiring any on-site installations. The platform predicts demand for each individual stock using the best algorithms. Subsequently, the forecast is run through various constraints which results in an optimal proposal for an upcoming order. These orders are integrated into Enterprise Resource Planning (ERP) solution, improving decision-making of the businesses.

                                                              

 

Such platforms can help businesses avoid warehouse jams and keep just the right amount of stocks for the customers. Thus, by understanding when and where resources would be needed, organizations can optimize their supply chains and efficiently allocate the resources.

By leveraging AI in these ways, enterprises can move closer to achieving equilibrium in production, where resources are optimally utilized, waste is minimized, and output meets demand consistently. AI plays a pivotal role in enabling organizations to formulate more realistic projects, leading to enhancements in operational efficiency, as well as fostering sustainability and competitiveness in the market. Hence, the idea of production equilibrium which was only a theory in economics is evolving into a more attainable concept with the application of AI.

 

 

 

 

 

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


© Copyright nasscom. All Rights Reserved.