Mitsubishi Electric’s New AI Forecasts Demand for Appliance Repair Parts

Rhea-AI Summary

Mitsubishi Electric Corporation has unveiled an innovative AI technology to enhance demand forecasting for repair parts, leveraging its Maisart® AI system. This development aims to rectify over/under-supply issues by improving inventory management and service quality. The new forecasting method shows a remarkable average accuracy improvement of 25.6% over existing models by analyzing specific demand trends for various parts. This advancement is expected to significantly boost operational efficiency and customer satisfaction.

Positive

• Improved demand forecasting accuracy by 25.6% through new AI technology.
• Enhanced inventory management and service quality, potentially benefiting customer satisfaction.

Negative

• None.

Company's first AI for accurate forecasting will help to strengthen maintenance services

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has developed an artificial intelligence (AI) technology that accurately forecasts demand for repair parts. Leveraging the company's Maisart^®* AI, the technology is expected to help avoid over/under-supply of parts needed to service appliances and other equipment and thereby strengthen inventory management and parts availability as well as improve service quality.
* Mitsubishi Electric's AI creates the State-of-the- ART in technology

Product Features

1) More accurate demand forecasting

• By incorporating Maisart AI, demand forecasts for individual parts have been improved on average by 25.6% compared to the company’s existing production–sales–inventory (PSI) planning and management solution, which is based on factors such as seasonally adjusted 12-month shipment-volume averages. Mitsubishi Electric’s new method uses AI learning data on characteristic demand trends for each type of part, such as air filters and controller boards. To forecast demands, the technology clusters trend components, then matches clustered trends to specific repair parts, and finally adjusts the results for seasonal factors.

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Customer Inquiries

Manufacturing Engineering Center

Mitsubishi Electric Corporation

Tel: +81-6-6497-7303

wrc.cpe-kouhou@nd.MitsubishiElectric.co.jp

www.MitsubishiElectric.com/

Media Inquiries

Takeyoshi Komatsu

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2346

prd.gnews@nk.MitsubishiElectric.co.jp

www.MitsubishiElectric.com/news/

Source: Mitsubishi Electric Corporation

FAQ

What is the new AI technology developed by Mitsubishi Electric?

Mitsubishi Electric has developed an AI technology to improve demand forecasting for repair parts, enhancing inventory management.

How much has demand forecasting improved with the new AI at Mitsubishi Electric?

The new AI technology has improved demand forecasting accuracy by an average of 25.6%.

What does the new AI technology signify for Mitsubishi Electric's services?

The technology aims to avoid over/under-supply of parts, thus strengthening maintenance services and improving overall service quality.

What is the impact of AI on Mitsubishi Electric's inventory management?

The AI technology enhances inventory management by accurately forecasting demand for individual repair parts.

Where can I find more information about Mitsubishi Electric's new AI development?

Additional details can be found on Mitsubishi Electric's official website and news section.