![\"what](\"https:\/\/solvedby.ai\/wp-content\/uploads\/2023\/03\/shutterstock_2231294329-1024x664.jpg\")
<\/figure>\n\n\n\nWhat planning tools should I use to allocate my resources efficiently?<\/h2>\n\n\n\n
To fully grasp what is resource allocation we need to understand the resource planning tools and that they cover two critical elements of the process. Sometimes these tools are separated, and they come as a combined tool in more advanced systems. The two key aspects are forecasting and planning.<\/p>\n\n\n\n
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- Forecasting tools<\/a>:<\/strong> these are used to predict how much resources will be required. They often work in two stages, first predicting the variables that correlate highly to resource allocation and second, predicting how much of each resource is needed to meet that demand. In the case of staff scheduling in a supermarket which is a classic resource allocation problem, the forecast would include items sold, revenue, number of “baskets” as well as internet orders and sales in the cafe. That would represent the first stage of the forecast. Once these have been accurately predicted, the second stage would be to estimate how many people and other resources are needed to ensure the customers are satisfied. <\/li>\n\n\n\n
- Planning and scheduling tools<\/a>: <\/strong>Once we have a forecast of how many resources are needed, we need to take some action, which could be ordering components, ingredients, stock or scheduling staff<\/a> or optimising vehicle routes. These are often complex problems which are much better solved with the help of software and often best solved by letting an AI allocate the resources.<\/li>\n<\/ul>\n\n\n\n
![\"forecasting](\"https:\/\/solvedby.ai\/wp-content\/uploads\/2023\/03\/Forecasting-screenshot-Edited-3.png\")
<\/figure>\n\n\n\nWhat are the two different approaches to AI resource allocation?<\/h2>\n\n\n\n
We find that there are two approaches for allocating resources. An AI model can be trained to optimise a fixed set of resources, or it can be trained to select the optimum resources to maximise the return. <\/p>\n\n\n\n
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- Allocating existing resources to maximise the return from those resources: <\/strong>This method takes an existing operating model, such as a fixed number of people and seeks to optimise their work against set criteria, often to generate the most revenue. There could be limited staff numbers or some other limiting criteria. With this approach, the AI is instructed on how many resources to allocate.<\/li>\n\n\n\n
- Allocating the optimal amount of resources to generate the maximum return possible:<\/strong> This method would look at the market size and customer demand and issue the maximum number of staff to generate a profit. The method is growing the demand by offering customers more choices. It could be used to schedule opening hours for a store. In this method, the AI can allocate as much resource as it can justify against pre-set criteria, often revenue per resource unit.<\/li>\n<\/ul>\n\n\n\n
Examples of resource planning tools<\/h2>\n\n\n\n
Many different tools are available, often in the cloud and often very specific for each task. And each sector, for example, in workforce management<\/a>, one vendor may focus on a specific type<\/a>, for example, on retail technology whilst another may focus on call centres. Here are some examples of resource planning tools<\/p>\n\n\n\n
![\"workforce](\"https:\/\/solvedby.ai\/wp-content\/uploads\/2023\/03\/shutterstock_368414420-1024x512.jpg\")
<\/figure>\n\n\n\n - Allocating the optimal amount of resources to generate the maximum return possible:<\/strong> This method would look at the market size and customer demand and issue the maximum number of staff to generate a profit. The method is growing the demand by offering customers more choices. It could be used to schedule opening hours for a store. In this method, the AI can allocate as much resource as it can justify against pre-set criteria, often revenue per resource unit.<\/li>\n<\/ul>\n\n\n\n
- Planning and scheduling tools<\/a>: <\/strong>Once we have a forecast of how many resources are needed, we need to take some action, which could be ordering components, ingredients, stock or scheduling staff<\/a> or optimising vehicle routes. These are often complex problems which are much better solved with the help of software and often best solved by letting an AI allocate the resources.<\/li>\n<\/ul>\n\n\n\n