Exploring How Artificial Intelligence Can Support Material Management and Production Cost Optimization in Manufacturing Enterprises

Zhang Kaixiang

University of Newcastle, Australia

Abstract：

In the context of digital transformation within the manufacturing sector, material management and control is a critical component of production cost management for manufacturing enterprises. Traditional extensive management approaches often suffer from issues such as forecasting inaccuracies, lax inventory management practices, and significant material waste during production; moreover, fragmented data landscapes and inadequate predictive capabilities hinder cost optimization efforts. Artificial intelligence (AI) technologies offer new tools for managing materials throughout their entire lifecycle; however, enterprises still face practical challenges—including inadequate data infrastructure, limited system compatibility, and a shortage of versatile talent pools. To address these challenges, companies should strengthen their data governance frameworks, implement customized intelligent systems, and build a skilled workforce, leveraging AI to achieve refined optimization of both material management and production costs.

Key Words：

Artificial Intelligence; manufacturing enterprises; material management; production cost