Using AI to solve complex business problems: optimizing...
summary
Lockdown-driven inventory surpluses force a move from heuristics to automation: a prescriptive pipeline combines elasticity‑demand models and full‑price demand forecasting with a linear‑programming optimizer that encodes reticketing costs, branding and logistical constraints to pick per‑item discount schedules. A store‑level A/B test on a seasonal rolloff shows the algorithm increases turnover on dead stock while preserving margin versus classic markdown rules. The system outputs discrete discount steps over time, enforces business rules, and deploys as operational price instructions.
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chapters (6)
- 0:00AI in retail pricing
- 2:05Promotional discounts in fashion
- 7:34Prescriptive AI for markdown
- 12:02Demand forecasting with discounts
- 13:32Customizing utility functions
- 15:19Summary
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