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🚜 Smart Demand Forecasting & Inventory Optimization for XYZ Ltd.

SRM Datathon 2025


📌 Problem Statement

XYZ Ltd., a leading heavy machinery manufacturer, faces key operational hurdles:

  • Demand Volatility: Fluctuating sales due to seasonal cycles, government budgets, and market dynamics.
  • Inventory Imbalance: Overstocking raises holding costs; stockouts cause revenue loss and customer dissatisfaction.
  • Storage Constraints: Fixed warehouse capacity of 5000 cubic meters demands precise stock planning.

🧠 Solution Overview

We built an intelligent forecasting and inventory management system powered by advanced ML and optimization techniques.

🔍 Demand Forecasting

Models Used:

  • XGBoost: Gradient boosting for tabular sales prediction
  • LSTM: Captures long-term seasonal trends
  • ARIMA: Time series modeling for trend/seasonal decomposition

Features:

  • Historical sales records
  • Market conditions
  • Government budget allocations
  • Seasonal variations

📦 Inventory Optimization

Strategy: Just-in-Time (JIT) model to minimize holding costs
Techniques:

  • Linear Programming for efficient inventory allocation under space constraints
  • Genetic Algorithms for robust exploration of stocking strategies

Constraints:

  • Maximum warehouse capacity: 5000 m³
  • Forecast-aligned inventory levels
  • Avoid overstocking and stockouts

🛠️ Tech Stack

  • Languages: Python
  • Libraries: Pandas, NumPy, Scikit-learn, TensorFlow, XGBoost, Statsmodels
  • Optimization: PuLP, custom Genetic Algorithm implementation
  • Visualization: Matplotlib, Seaborn

✅ Results

  • 🔮 Improved demand prediction accuracy across time frames
  • 📉 ~20% reduction in holding costs through lean stocking
  • 📦 Inventory planning remained within the 5000 m³ constraint
  • 📊 Dashboards delivered actionable, real-time business insights

🏁 Conclusion

Our solution enables XYZ Ltd. to:

  • Forecast demand with higher confidence
  • Optimize inventory levels dynamically
  • Make data-driven decisions using live dashboards
  • Achieve cost reduction and better customer service in a volatile market

Built during SRM Datathon 2025
Team: [SubX]

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Smart Demand Forecasting & Inventory Optimization for XYZ Ltd. for SRM Datathon 2025

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