Machine Learning

Demand Forecasting & Inventory Optimization

Client: Retailer - 400 stores

Demand Forecasting & Inventory Optimization - The project

The project

Development of a 90-day demand forecasting model for 400 stores and 12,000 product references, accounting for seasonality, promotions, weather and local events.

Architecture & implementation

Coupling of the forecasting model with an inventory optimization algorithm to minimize stockouts and overstock, factoring in logistics constraints, supplier lead times and storage costs.

Monitoring & adoption

Dashboard deployed for 400 store managers: personalized replenishment recommendations, imminent stockout alerts and promotion suggestions to clear excess inventory.

Results & production rollout

Results over 12 months: 32% fewer stockouts, 24% less overstock and 11% higher gross margin. The project was rolled out across the entire network and has become a daily tool for the teams.

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