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CSEET · Economic and Business Environment · AI and Business Environment

An e-commerce firm in Bengaluru uses AI to forecast demand for each product by city and to decide how much stock to hold in each warehouse. Which business function benefits most directly?

Supply chain and inventory management benefit most directly. AI demand forecasts by product and city help the firm place the right stock in each warehouse, reducing stock-outs and excess inventory. Filings, branding and dividend decisions are not the purpose of this forecasting application.

  1. ASupply chain and inventory managementCorrect
  2. BCompany secretarial filings
  3. CBrand logo design
  4. DDividend declaration

Explanation

Demand forecasting and stock allocation across warehouses directly improve supply chain and inventory management by cutting stock-outs and excess stock. Filings, logo design and dividend decisions are not driven by this forecasting use.

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