Using AI for Accurate Demand Forecasting and Manufacturing Production
Manufacturing production facilities plan production cycles based on standard planning parameters. However, with improved technology, manufacturing companies can start to rely on actual demand to drive production decisions. These planning activities all stem from being able to generate an accurate sales forecast. With the built-in features of AI forecasting in Dynamics 365, this is all possible.
Reliable sales forecasts are only achievable through a compilation of sales data and a history of prior purchases that lead to calculated projections for production needs during a specific time period. With verified data and projections in hand, managers are able to better understand which products to prioritize for production and which have sufficient inventory levels for upcoming sales.
Artificial Intelligence is built into Dynamics 365 and the AI forecasting feature provides predictive analysis on quantities and generates projected inventory levels by time frame or period. Additionally, your sales forecast includes the number of units projected to be sold during the same time period. You can cross-compare this data to understand exactly what you should be manufacturing and when.
Within Dynamics 365, there are four different types of planning options:
- Fixed reorder
- Maximum reorder
- Lot for lot
The planning type and quantities that you choose can be determined by your projections that allow you to make more educated production decisions.
Without modern technology and systems in place, you’re restricted to managing this information on spreadsheets and attempting to make educated guesses on inventory orders and projected sales. Dynamics 365 gives you the facts you need to make decisions to drive productivity, profits, and ensure success.