Inventory Allocation Supported by Recommendation Intelligence

Success Story #
19
Retail
Supply chain & Manufacturing
Marketing

Business Problem
Retail stores lacked decisionsupport to guide allocation and assortment decisions, limiting the ability tooptimize product placement and improve in-store availability.

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Actions Taken

·      Implemented similarity-based andaffinity-based recommendation models.

·      Used image similarity (VGG-based models) toidentify comparable SKUs.

·      Applied market basket analysis andcollaborative filtering to identify complementary products.

·      Provided analytical insights to supportallocation and assortment decisions.

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Outcomes Achieved

·      Improved cross-store and in-store allocationof related products.

·      Increased effectiveness of inventoryplacement decisions.

·      Supported higher product availability andassortment relevance.

·      Contributed to improved sales performance inpilot stores.

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