Retailers face many decisions when launching new products. One key decision isthe amount of product to order from the manufacturer.
Ordering too much wastes working capital and can lead to products being heavily discounted. Ordering too little squanders an opportunity for revenue and may cause customers to purchase other brands.
Getting initial orders quantities right is particularly difficult for luxury products where first year demand for a new purse, a new belt or a new shoe can vary by several orders of magnitude based on factors unrelated to the product specifications.
About this Accelerator
This notebook is designed for retail organizations (especially luxury brands), specifically for their data scientists and business leaders who are responsible for new product launches. It illustrates how to build a model to improve decisions about initial order quantities using future product details and product sketches.
What you will learn
Exploratory data analysis
Running machine learning experiments
Reviewing the results to extract business insights