Scribd
Upload
4 views3 pages

Vcase study on demand forecasting_edited

Walmart's sales forecasting utilizes historical data, seasonal trends, and external factors to predict future sales and optimize inventory management. The process involves data collection from various sources, advanced analytics, and machine learning algorithms to improve forecast accuracy and efficiency. Key benefits include better inventory management, increased customer satisfaction, and a data-driven decision-making approach.

Uploaded by

mayurvenkat185
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
4 views3 pages

Vcase study on demand forecasting_edited

Walmart's sales forecasting utilizes historical data, seasonal trends, and external factors to predict future sales and optimize inventory management. The process involves data collection from various sources, advanced analytics, and machine learning algorithms to improve forecast accuracy and efficiency. Key benefits include better inventory management, increased customer satisfaction, and a data-driven decision-making approach.

Uploaded by

mayurvenkat185
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Venkat Narayanan Manjunath

2023BCSE07AED325
Case study

Walmart Sales Forecasting is a comprehensive approach used by Walmart to predict


future sales and optimise inventory management. Here's a detailed explanation:

Overview

Walmart's sales forecasting approach uses a combination of historical data, seasonal


trends, and external factors to predict future sales. The goal is to accurately forecast
sales to ensure that the right products are stocked in the right quantities, reducing
stock-outs and overstocking.

Data Collection

Walmart collects a vast amount of data from various sources, including:

1. Point of Sale (POS) data: Sales data from every transaction at every store.

2. Inventory data: Current inventory levels, including quantities and locations.

3. Supply chain data: Shipping and receiving data, including lead times and
transportation costs.

4. Weather data: Historical and real-time weather data to account for weather-related
sales fluctuations.

5. Calendar data: Holidays, events, and seasonal trends that impact sales.

6. Customer data: Demographic, behavioural, and transactional data to understand


customer preferences.

Data Analysis

Walmart uses advanced analytics and machine learning algorithms to analyse the
collected data. The analysis involves:

1. Time series analysis: Identifying patterns and trends in historical sales data.

2. Regression analysis: Modeming the relationships between sales and external factors
like weather, holidays, and prices.

3. Machine learning algorithms: Using techniques like neural networks, decision trees,
and clustering to identify complex patterns and relationships.

Forecasting Models
Walmart employs various forecasting models, including:

1. ARIMA (AutoRegressive Integrated Moving Average): A statistical model that accounts


for trends, seasonality, and residuals.

2. Exponential Smoothing (ES): A family of models that weight recent observations more
heavily than older ones.

3. Machine learning models: Such as neural networks, decision trees, and random
forests, which can handle complex relationships and non-linear patterns.

Forecasting Process

The forecasting process involves:

1. Data preparation: Cleaning, transforming, and formatting data for analysis.

2. Model selection: Choosing the best forecasting model based on historical data and
performance metrics.

3. Model estimation: Estimating the parameters of the selected model using historical
data.

4. Forecast generation: Using the estimated model to generate forecasts for future
sales.

5. Model evaluation: Continuously monitoring and evaluating the performance of the


forecasting model.

Benefits

Walmart's sales forecasting approach has several benefits, including:

1. Improved forecast accuracy: By using advanced analytics and machine learning


algorithms, Walmart can improve the accuracy of its sales forecasts.

2. Better inventory management: Accurate sales forecasts enable Walmart to optimise


inventory levels, reducing stock-outs and overstocking.

3. Increased efficiency: Automated forecasting processes reduce manual effort and


improve efficiency.

4. Enhanced customer satisfaction: By ensuring that the right products are stocked in
the right quantities, Walmart can improve customer satisfaction and loyalty.
In conclusion, Walmart's sales forecasting approach is a sophisticated and data-driven
process that leverages advanced analytics and machine learning algorithms to predict
future sales. By analysing historical data, seasonal trends, and external factors,
Walmart can improve forecast accuracy, optimise inventory management, increase
efficiency, and enhance customer satisfaction.

The key takeaways from Walmart's sales forecasting approach are:

1. Data-driven decision-making: Walmart's approach relies heavily on data analysis and


machine learning algorithms to drive forecasting decisions.

2. Integration of external factors: Walmart's approach considers external factors like


weather, holidays, and prices to improve forecast accuracy.

3. Continuous model evaluation: Walmart continuously monitors and evaluates the


performance of its forecasting models to ensure accuracy and efficiency.

Overall, Walmart's sales forecasting approach serves as a best practice for retailers and
organisations seeking to improve their forecasting capabilities and drive business
success.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy