Simulation Model shows the path to a disruption resilient supply chain
Analytics for an Online Retailer: Demand Forecasting and Price Optimization
This presentation highlights a collaborative effort with Rue La La, an online fashion sample sales retailer, showcasing how leveraging extensive data can optimize daily pricing decisions. Rue La La faces the challenge of pricing and forecasting demand for new products, a significant portion of their sales. To address this, the team employs machine learning to estimate historical lost sales and predict future demand. The unique nonparametric structure of the demand prediction model, coupled with the influence of competitor prices, requires a tailored algorithm for multi-product price optimization.