GlossaryEN1 min readUpdated: Jun 12, 2026

Prescriptive Analytics

Whereas predictive analytics answers "What will happen?", prescriptive analytics goes further and asks "What should we do?".

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Last updated: 12 June 2026Published: 27 January 2026

Source: https://www.ibm.com/topics/prescriptive-analytics

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Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

Whereas predictive analytics answers "What will happen?", prescriptive analytics goes further and asks "What should we do?". It applies optimization models, simulations, and decision algorithms to recommend specific actions—for example, "Distribute inventory across four warehouse sites to minimize cost while maintaining 98 % service level." Logistics planners and network designers use prescriptive analytics to optimize distribution networks, select shipping modes, or adjust inventory automatically. Unlike prediction alone, prescriptive systems deliver actionable recommendations backed by mathematical optimization and scenario testing.

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