Machine learning methods and inventory management were a focus in my Master’s work. In the newsvendor problem, an amount of product to order must be decided upon periodically for reselling. Ordering too much results in losses due to overstock which must be discarded; too little results in losses due to lost sales. Traditional approaches experience a tradeoff in that some methods perform better in some situations, while our machine learning approach performs well consistently, particularly in situations where the demand suddenly increases or decreases.
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