Inventory management system

A system for optimizing inventory management by forecasting Stock Keeping Units (SKUs) to be supplied by a consumer packaged goods (CPG) manufacturer to a retailer, wherein the SKUs to be supplied are forecasted in order to avoid an out of stock (OOS) at the retailer, the system comprising:

• a processor;
• and
• a memory coupled to the processor, wherein the processor is capable of executing a plurality of modules stored in the memory, and wherein the plurality of module comprising:
• a data receiving module for receiving marketing data, point of sale data, social-media data, and miscellaneous data from one or more data sources, wherein the marketing data, the point of sale data and the social-media data are associated with the SKUs;
• an analysis module for
• analyzing the social-media data to compute a social-media score, wherein the social-media score is computed based on a weighted average of sentiments present in the social-media data, buzz corresponding to the SKUs, and brand of the SKUs, and wherein the social-media score indicates demand of the SKUs;
• generating one or more variables from the marketing data, the point of sale data and the miscellaneous data based upon a model fit;
• and
• transforming the one or more variables and the social-media score into one or more transformed variables based on the model fit;
• a forecasting module for
• forecasting a demand of the SKUs by processing the one or more transformed variables using a Bayesian-Var Model;
• determining a probability of the OOS and a replenishment time based on a count of the SKUs, wherein the probability of the OOS and the replenishment time are associated to the SKUs;
• and
• processing the count and a plurality of constraints using a Mixed Integer Linear Programming (MILP) model in order to obtain an optimal solution indicating the SKUs to be supplied by the CPG manufacturer to the retailer, wherein the plurality of constraints is associated with service level agreement between the CPG manufacturer and the retailer.

A non-transitory computer readable medium embodying a program executable in a computing device for optimizing inventory management by forecasting Stock Keeping Units (SKUs) to be supplied by a consumer packaged goods (CPG) manufacturer to a retailer, wherein the SKUs to be supplied are forecasted in order to avoid an out of stock (OOS) at the retailer, the program comprising a program code:

• a program code for receiving marketing data, point of sale data, social-media data, and miscellaneous data from one or more data sources, wherein the marketing data, the point of sale data and the social-media data are associated with the SKUs;
• a program code for analyzing the social-media data to compute a social-media score, wherein the social-media score is computed based on a weighted average of sentiments present in the social-media data, buzz corresponding to the SKUs, and brand of the SKUs, and wherein the social-media score indicates demand of the SKUs;
• a program code for generating one or more variables from the marketing data, the point of sale data and the miscellaneous data based upon a model fit;
• a program code for transforming the one or more variables and the social-media score into one or more transformed variables based on the model fit;
• a program code for forecasting a demand of the SKUs by processing the one or more transformed variables using a Bayesian-Var Model;
• a program code for determining a probability of the OOS and a replenishment time based on a count of the SKUs, wherein the probability of the OOS and the replenishment time are associated to the SKUs;
• and
• a program code for processing the count and a plurality of constraints using a Mixed Integer Linear Programming (MILP) model in order to obtain an optimal solution indicating the SKUs to be supplied by the CPG manufacturer to the retailer, wherein the plurality of constraints is associated with service level agreement between the CPG manufacturer and the retailer.