Power of Explainability for Demand Planning: A Case Study in Retail
Thursday, October 6, 2022
Sensing customer demand accurately is a crucial factor to optimize the inventory levels in the retail sector. Using sophisticated black box machine learning algorithms provides our client, a major Turkish retailer, accurate forecasts. However, it makes it impossible to understand the effect of each feature for model outputs. Our solution for Explainable AI (xAI) solved this problem by providing transparency on the feature level and enabled the retailer team to trigger actions for managing the customer demand in the market effectively.