The client is a US based Multinational Retail Corporation that has a chain of hypermarkets, discount department stores and grocery stores. The objective was to predict the weekly sales by store type, store location based on economic parameters like CPI, fuel price, unemployment that helps them to make more detailed analysis and improve their sales forecast accuracy. After a detailed evaluation of their operations, AI Labs (www.ailabs.inc) used its proprietary Minsky AI Engine to optimize the models by using a combination of AI algorithms and prediction attributes. In this case, Minsky used historical data for model creation and created weekly sales forecasts by using real time economic data along with store specific information. This solution was optimized and implemented in less than a week.
Typical Sales Forecast Challenges:
Manufacturing the wrong product mix.
Wastage of perishable items.
Increase in obsolete inventories.
Uncertain forecasts lead to wrong hiring decisions.
Excessive time for generation of forecasts
Unable to maximize profit margins /ROI
Inability to manage fluctuations between demand and supply.