Magazine Supply Optimization: a Case-study
Abstract
Supply optimization is a complex and challenging task in the magazine retail industry because of the fixed inventory assumption, irregular sales patterns, and varying product and point-of-sale characteristics. We introduce AthenIA, an industrialized magazine supply optimization solution that plans the supply for over 20,000 points of sale in France. We modularize the supply planning process into a four-step pipeline: demand sensing, optimization, business rules, and operating. The core of the solution is a novel group conformalized quantile regression method that integrates domain expert insights, coupled with a supply optimization technique that balances the costs of out-of-stock against the costs of over-supply. AthenIA has proven to be a valuable tool for magazine publishers, particularly in the context of evolving economic and ecological challenges.
Cite
@article{arxiv.2408.08637,
title = {Magazine Supply Optimization: a Case-study},
author = {Duong Nguyen and Ana Ulianovici and Sami Achour and Soline Aubry and Nicolas Chesneau},
journal= {arXiv preprint arXiv:2408.08637},
year = {2024}
}