Forecasting Demand for Perishable Items

Project Details


2012 (Nov)


Ankur Pandey, Arun Chaubey , Sanchit Garg, Shahid Siddiqui, Sharath Srinivas





Managing inventory of perishable goods such as fruits and vegetables is a difficult task for big
retail stores as these items have a very short shelf life. If not managed properly, excessive stock
may result in loss of inventory, but at the same time under stocking may result in lost sales. In
this project we are trying to accurately forecast the demand for 4 SKUs - apple, banana, onion
and potato, so as to optimize the profits from sale of these items. This overall goal can be
translated into a forecasting problem of accurately predicting the demand of these perishable
SKUs. Ultimately, the forecasted demand has to be translated into the operational problem of
how much quantity of the SKU to replenish every day.

Application Area: