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White Paper

Optimizing Supply and Demand Balance Through Econometrics

Optimizing Supply and Demand Balance Through Econometrics

Optimizing Supply and Demand Balance Through Econometrics

Ridecell
Pages 15 Pages

The classic problem of inventory balancing is as ubiquitous as your most basic supermarket item. Think about a single brand of cereal in the breakfast aisle. Consider, how many boxes should be here? The answer is certainly not two... because after just a few cereal-minded customers walk by, the store will be out of inventory and lose sales. The answer isn’t 200 either. Too many boxes and inventory will end up sitting a long time, taking up space, tying up capital, and potentially expiring on the shelf. To expand this example to high-ticket items thus making the problem more extreme pretend each of those boxes of cereal costs $30,000 to stock.

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