Machine Learning and Statistics: A Study for assessing innovative Demand Forecasting Models

Besides increasing dynamics in market demands, companies strive to avoid short-term changes in their supply chain planning. Therefore, an essential lever to improve supply chain performance is the optimization of the demand forecast. In this regard, artificial intelligence is a widely adopted technique in Industry 4.0 that is associated with high expectations. Against this background, six different forecasting models from statistics and machine learning were evaluated in respect to forecast quality and effort for implementation. The results underline the potential of innovative forecasting models as well as the necessity for an intensive and application-specific evaluation of the advantages and disadvantages of the available approaches.