Summary of the entity:
Migros is one of the largest FMCG retailers in Turkey. With more than 2000 stores and 30.000 employees, Migros is also the pioneer of organized retailing in Turkey. Migros today offers spacious stores in a wide range of formats and locations whose vast selection of cosmetics, stationery, glass and kitchenware, electronic appliances, book, textiles, and other items along with groceries and other necessities give it the ability to satisfy the shopping needs of its customers.
The company aims to be always the first choice of customers by providing a unique convenience and trustworthy shopping experience through its ultimate service approach, pioneer applications, broad product portfolio and family budget friendly pricing strategy.
Summary of the challenge:
In this challenge we are looking for a demand prediction model for each store and SKU using point-of-sale and operational data. The objective is to have a scalable and accurate model that can forecast sales for the upcoming month. The data for the challenge consists of sales and price data, promotion information and inventory movements and availability.
SKU-based sales forecasting is an important topic in retail as successful inventory management can help a retailer in many aspects. For example, stock-outs in retailing is one of the biggest problems as they cost lost sales and disturb the customer experience and create lost sales. On the other hand, keeping a high level inventory is neither practical nor efficient. In this challenge we are looking for a way to forecast SKU based demand for Migros stores. These forecasts can be used to formulate replenishment plans. We use sales data, product prices, promotion, replenishment and availability to generate forecasts and/or replenishment plans.
Demand forecast and / or replenishment plan