Retailers face a formidable challenge of ensuring that they have optimum levels of inventory for goods that are perishable. This is because these goods have short shelf life without any salvage value and can hurt the profitability of the retailers significantly. It therefore becomes critical for the retailers to know accurate forecasts for perishable items such as fresh milk and yoghurt. These subclasses also drive footfall into the retail stores and hence it is important to maintain high levels of service for these products.
ABC retail is a large format hyper market. It sells food, fashion and electronics. Data led
insights and analytics forms the foundation of all decision making and communication. It now wishes to
We aim to forecast daily sales (unit sold) of the top 5 selling SKUs for the coming week (1st August 2012 to 7th August 2012). We identify the top 5 selling SKUs in 2012.
Prof. Galit Shmueli, Institute of Service Science, College of Technology Management, National Tsing Hua University, 101 Kuang Fu Road Sec. 2, Hsinchu 30013 Taiwan
