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arXiv · 2408.08637

Magazine Supply Optimization: a Case-study

Duong Nguyen·Ana Ulianovici·Sami Achour·Soline Aubry·Nicolas Chesneau
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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.

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Duong Nguyen, Ana Ulianovici, Sami Achour, Soline Aubry, Nicolas Chesneau. 2024-08-16. Magazine Supply Optimization: a Case-study. https://arxiv.org/abs/2408.08637

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