Large-Scale Demand Forecasting

Machine Learning Forecasting Model for a Quick Service Restaurant

The customer wanted a demand forecasting solution with a dashboard to receive updates on a periodic basis to have better control on demand fluctuations in order to have an efficient supply chain, which in turn would reduce costs, food wastage, and optimize available warehouse space.

Solution

Quantiphi built a forecasting engine to predict sales at a daily and 15-minute level. The solution encompasses an intuitive UI that not only visualizes inventory management, but also diagnoses and finds preventive measures to help curb wastage, set alerts, and control variables for forecasting. In turn, optimizing warehouse management and assisting in manpower scheduling. This helps to improve the estimates of the suggested quantities of ingredients to be ordered from the distribution centers. The solution was scaled to more than 1,119 stores.

Result

• Quantiphi’s demand forecasting models were able to perform better than the customer’s legacy system by about 25 percent in terms of error reduction
• Sensitivity analysis capability shown by the models based on the previous occurrences of the external factors affecting the sales