System and method for item-level demand forecasts using linear mixed-effects models
AssigneeWal-Mart Stores, Inc.
InventorsHuijun Feng, Shubhankar Ray, Abhay Jha
Life of this patent
Estimating the term…
Abstract
A system and method for forecasting sales is presented. A method might begin by receiving a request to produce a demand forecast for a stock keeping unit (SKU). Then, the SKU is placed in one or more clusters. A cluster seasonality profile is calculated for each of the one or more clusters. An item seasonality profile is calculated for the SKU. Then the demand forecast for the SKU is generated. The demand forecast is adjusted using the cluster seasonality profile for each of the one or more clusters and the item seasonality profile for the SKU. Then inventory can be ordered based on the adjusted demand forecast. Other embodiments are also disclosed herein.
Claims21
A method comprising:
- receiving a request to produce a demand forecast for a stock keeping unit (SKU);
- placing the SKU in one or more clusters;
- calculating a cluster seasonality profile for each of the one or more clusters;
- calculating an item seasonality profile for the SKU;
- generating the demand forecast for the SKU;
- adjusting the demand forecast using the cluster seasonality profile for each of the one or more clusters and the item seasonality profile for the SKU;
- and
- ordering inventory based on the adjusted demand forecast.
A system comprising:
- a user input device;
- a display device;
- one or more processing modules;
- and
- one or more non-transitory storage modules storing computing instructions configured to run on the one or more processing modules and perform the acts of:
- receiving a request to produce a demand forecast for a stock keeping unit (SKU);
- placing the SKU in one or more clusters;
- calculating a cluster seasonality profile for each of the one or more clusters;
- calculating an item seasonality profile for the SKU;
- generating the demand forecast for the SKU;
- adjusting the demand forecast using the cluster seasonality profile for each of the one or more clusters and the item seasonality profile for the SKU;
- and
- ordering inventory based on the adjusted demand forecast.
At least one non-transitory memory storage module having computer instructions stored thereon executable by one or more processing modules to:
- receive a request to produce a demand forecast for a stock keeping unit (SKU);
- place the SKU in one or more clusters;
- calculate a cluster seasonality profile for each of the one or more clusters;
- calculate an item seasonality profile for the SKU;
- generate the demand forecast for the SKU;
- adjust the demand forecast using the cluster seasonality profile for each of the one or more clusters and the item seasonality profile for the SKU;
- and
- order inventory based on the adjusted demand forecast.
Dependencies are inferred from the claim text.