Artificial Intelligence in Supply Chain Management

Artificial Intelligence in Supply Chain Management

Rana Özyurt Kaptanoğlu (Medipol Üniversitesi, Turkey)
DOI: 10.4018/978-1-7998-1397-2.ch025

Abstract

This chapter develops a method proposal regarding digitisation of variables in road, maritime, and airline transport, and makes parameters machinable, output-producing algorithms methods. Results regarding which artificial intelligence is proper to be used in storage, distribution, stock, and order tracking, supply chain architecture, and third- and fourth-party logistical practices are sought. For this, artificial neural nets, software techniques, artificial intelligent philosophy, and the reflections on the business world are analysed.
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Artificial Intelligence

Artificial intelligence is defined as the comprehension of human’s mentality and trying to develop computer operations, which can present similar mentality. In other words, it is the thinking attempt of programmed computer. According to more broad definition, artificial intelligence is the computer, equipped with capacities unique to human intelligence such as knowledge acquisition, perception, vision, thinking and making decisions (Yapay Zeka, 2012). Even though artificial intelligence is generally associated with the computer units, it is also closely related to mathematics, biology, psychology, philosophy and other different sciences. The combination of information gathered from all of these sciences will eventually depend on the developments regarding artificial intelligence (Keleş, 2015).

Today, Siri, the artificial intelligence application, developed to help people on their mobile devices by Apple Corp., gives hundreds of answers to the millions of users regarding tens of thousands different issues at the same time. Siri is a product of an at least 20-year artificial intelligence research. It can be referred as an algorithm symphony or mathematical poem which hundreds of engineers wrap them up in voices and images. From this point of view, artificial intelligence is the field of computer sciences, which deals with the designing intelligent computer systems, i.e. systems having linguistic performance, learning, reasoning, solving problem abilities (Barr & Feigenbaum, 1981:3).

The concept of artificial intelligence as medium that shapes the change is a benefit centre with its all risks, and points, which are open to discussion and improvement. Today, Uber has become the biggest taxi company, which does not have a single taxi and has an organizational culture, benefitting from artificial intelligence applications in an effective way (Osborne, 2017:1). On the other hand, AirBnb, the biggest accommodation company in the world, has a service network which is in compliance with the millions of people’s location, price range and quality choices without having a single accommodation. AirBnb makes system sustainable by analysing the consumption tendencies, choice criteria, personal expectations of users and updating the business processes according to the obtained results due to the algorithms of artificial intelligence (Grewali 2017). In addition to this, Google, Facebook and Twitter, the most popular media companies of the world, have their genuine artificial intelligence algorithms. Structures such as B2B (Busines to Business), Amazon, Alibaba, Hepsiburada, and C2C (Consumer to Consumer), B2C (Business to Computer) do not have their own stocks. They only mediate billions of dollars shopping and provide necessary technology, credibility, arbitration, easy payment for this shopping. Digital platforms considerably reduce the operation and dispute costs of people or institutions, arising during the mutual usage of a product or providing services (Schwab, 2016).

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