Hardware Podcasts

Using AI to Right-Size Inventory and Kill Shortages w/ Richard Lebovitz

The Manufacturing Executive · 28 Jul 2026 · 31m · Episode 320

AI in practice: 3 real uses of AI described

What this episode covers

Richard Lebovitz, founder and chief strategy officer of LeanDNA, explains how manufacturers can reduce part shortages and optimize inventory by treating supply chain management like targeted marketing campaigns. He distinguishes between predictive AI, which forecasts trends, and prescriptive AI, which is harder to implement because it must provide explainable, believable actions to gain user trust. Lebovitz argues that the key to solving shortages is not just chasing missing parts, but clearly communicating to suppliers what is *not* needed to free up their capacity. He advises manufacturers to start with AI for explainability and data interpretation rather than letting it make autonomous decisions, ensuring the technology makes the work easier for human planners.

AI in practice

Where this conversation describes AI being used to build or deliver a product. Part of the AI in practice tracker.

Logistics & fulfilmentLeanDNA

The platform uses AI to analyze supply chain data and explain the logic behind inventory optimization decisions, such as why a safety stock level should be adjusted or a purchase order split, making complex data understandable for buyers.

“What we do is, we now log all that data. … where we're seeing a great way to start with AI is helping you understand things, helping you explain things, and taking very complicated data … and making it to where the actions I need to take are clear, and understandable…”

Speaker 3 · Hear it at 24:29

Logistics & fulfilmentLeanDNA

The system applies prescriptive analytics to determine the 'time to impact' for inventory changes, prioritizing actions that prevent costly overstocking or shortages based on urgency and value.

“we use our analytics to both, look at what's going to happen if you do nothing, what will happen if you take the action, and then how much time do you have to get that update done before it actually has an impact … being able to prescribe those level of actions, to be able to prescribe kind of that time-based urgency?”

Speaker 3 · Hear it at 20:19

Running the companyLeanDNA

The company uses AI to generate explanations for specific inventory actions, allowing users to ask questions about why a shortage occurred or why a policy was changed, shifting the buyer's role from firefighting to strategic campaign management.

“the goal of AI is to not create that data, but is to analyze all that data, interpret it, and then end up making it easy for the user to understand it. So if I was to maybe close on this point. … how do you make work easy for people?”

Speaker 3 · Hear it at 24:29

Most relevant to

companies scaling up

Topics

Mentioned

Companies
LeanDNA, SAP, Factory Logic, Guerrilla 76
Also
Toyota Production System, Shingo Prize

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