Evolution Of Artificial Intelligence Harvard Case Solution & Analysis

Evolution Of Artificial Intelligence Case Study Solution

Control of Production and Inventory Levels

In order to give high value to customers and meet the consumer demand on time, an organization requires an idle level of inventory. However, if the production and inventory levels are high, substantial costs of warehousing and maintenance would be required

The holding cost for one year of one unit of inventory would on average be approximately 20% of original product. This may result in an overall increase in production cost of the company, leading to decline in returns.

An organizations competitive position depends upon the abilities it has to look after production and inventory at such level that customer needs are managed while holding optimal cost, production and inventory level.

Efficient production and inventory management needs the current & accurate information of inventory level in hands, market related information, customer demands etc. It would however be difficult, to estimate market demand accurately through human intelligence.

Inventory management assistant (IMA), which is an expert system, was designed by Allen in 1986. An organisation can achieve optimal production goals, inventory management, and improve its efficiency after implementation of Inventory management assistance.

Distribution Control

In terms of distribution networks management, artificial intelligence’s application has been beneficial for industries and businesses. It manages commercial shipments, and supports in transportation networks design across company’s supply chain. Numerous problems are faced by the organisation related to shipment and transportation of products in distribution network. These include parking location’s efficient utilization, scheduling vehicle traffic, and mapping road networks.

organizations require accurate information and data regarding time schedules of vehicles, road networks, distance of roads etc. human intelligence However, is not capable of providing accurate data to such critical problems.

The organization found the need to search for another way to solve their transportation related problems. General Algorithm (GA) is used by Many large firms which is the most popular form of AI. ANT colony optimization algorithm is Another form of AI that solves meta-heuristic distribution problems.

Decision Support System

Various levels of management is supported by artificial intelligence in decision making process. valuable data is provided related to a critical decision that calculates the feasibility and productivity of alternate options using provided data. make-or-buy decisions for example, involves options evaluation of outsourcing production and in house manufacturing for achieving cost efficiencies.

Critical assessment over various points is included in the decision, which involves; amount of attached risk to new product’s development, investment of resource, and the amount of produced goods etc

For aforementioned stated points requires complex decisions for effective decision making process. human intelligence alone cannot handle these complex decisions. Therefore, various computerized tools are used to aid the decision making process of the complex scenarios above.


Humphrey’s expert system is the most popular tool to aid with decisions regarding make-or-buy. Expert system was used in evaluating performances by the managers in the purchasing department for suppliers in market and for the exchange of information with other employees of purchasing department

production managers to acquire efficiency through the expert system by analysing performance of order completion by different suppliers, managing online bid processes, ordering goods online without any human, and providing time efficient operations.

search of valuable suppliers depending on several characteristics defined by the managers can be done due to the unique design of this expert system. Purchases can be completed without any human help.

Demand Forecasting

Demand forecasting is essential for defining accurate production and inventory levels to reduce the cost of holding high levels of inventory. Low holding cost result in reduced operational costs hence result in high profit margins of organizations in the industry.

As consumer demands tends to be highly fluctuating, therefore, one cannot predict accurate consumer demands for the future. Not only has this, but different types of forecasting techniques also impacted the projected demand levels.

Although, there are a lot of techniques used by various irganizations to predict demand, but all these techniques are either outdated, and do not provide accurate da

demand forecasts or they are based upon previous data rather than current market data. These techniques are used for both short term demand forecasting and long term demand forecasting, but one cannot rely over these data highly as the data is not accurate.

The problem related to the old forecasting techniques can only be solved by using a technique which provide accuracy of the predicted data. The most popular technique that the large firms are utilizing for their demand forecasts ans for other purposes as well is the Artificial Intelligence.

AI expert systems provide accurate data related to demand forecast which can provide operational efficiency to the company by determining optimal inventory and production levels.


The involvement of Artificial Intelligence is the strategy, structure and use with the evaluation of perceptive work out and learning of machines for the improvement of public agencies management. (Desouza, 2015)

A number of techniques using data sciences have been used by the Government which includes machine learning.

Due to the Government Data Programme, the use of these machines has also increased. The use of this technique has been providing with the insight of feedback of data range from use of agricultural land to the digital delivery service by satellite image analysis.

With the improvements in the complexity, there are chances to generate benefits.

Such as:

  • Efficient Services: the services includes emergency, social care and health need to be made more efficient through demand anticipation and modifying the services in order to deploy resources bringing about a better impact.
  • Easy: Making the use of data easier for the officials to bring reduction in errors and fraud and likewise to inform decisions through quick access to relevant data.
  • Clear Decisions: through capturing the digital records behind the process or visualization of data assist in making more clear decisions.
  • Better Understanding:It helps the governmental departments to have better understanding with the team groups they work for to ensure that each individual is provided with the right opportunity and support needed.

With the increasing use of AI and data its applications will be noticeable and AI will be more ordinary.

Any government organization is a distinctive body with inimitable responsibilities that differ from private firms. The government organization must be clear in its actions, the process followed and be answerable to their residents of their state.

It means that government has special duties beyond the above mentioned ones which is followed by the use of big data and artificial intelligence.

For the analysts of government, the government has printed a guide on the data science tools ethical use. The repetition of code practice was developed on the basis of external input and repetition of data scientists to make it as much useful and practical as possible inside government.

The uses of artificial intelligence particularly in relevance with government are: advice and probable lawful implications. (Sir Mark Walport, 2015)........


This is just a sample partical work. Please place the order on the website to get your own originally done case solution

Share This


Save Up To




Register now and save up to 30%.