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KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

Start » Predictive Resource Allocation (Glossary)
2 June 2024

Predictive Resource Allocation (Glossary)

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The term „predictive resource allocation“ is primarily found in the fields of automation, industry and Industry 4.0, as well as artificial intelligence. It describes a method by which companies plan their materials, machines, and employees so that everything is used as efficiently as possible – even before a bottleneck occurs.

Unlike classic planning, where problems are only reacted to, proactive resource allocation uses data analysis and smart predictions to learn where demand will arise in the future. This involves incorporating production data, customer orders, or even weather forecasts, for example, to initiate the right steps in good time.

A simple example: In a modern car factory, the system recognises from the current order situation and stock levels that a particular part could become scarce in two weeks. It automatically reorders this part today and adjusts the production lines to ensure everything continues to run smoothly. This proactive resource allocation thus prevents unnecessary waiting times or downtimes and saves costs.

Especially in the digital industry, this method helps companies to produce more flexibly and successfully.

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