Analysis
Stochastic Inventory Policy for a Sustainable Fashion Brand
Overview
What this challenge is about.
Using historical demand data (provided), fit a demand distribution and determine optimal (s, S) or (R, Q) policy parameters. Consider perishability (seasonal collections) and a target fill rate of 98%. Implement a simulation to test your policy against historical demand and compare to current practice. Deliver a policy recommendation, a simulation-based evaluation, and a dashboard showing key metrics (fill rate, average inventory, orders per year).
The Brief
What you'll do, and what you'll demonstrate.
Design a stochastic inventory policy that minimizes total expected cost (ordering, holding, shortage) while achieving a 98% fill rate under uncertain demand and lead time.
Earning criteria — what you'll demonstrate
- Apply stochastic inventory theory (newsvendor, (s,S) policy) to a real-world setting
- Fit probability distributions to demand data and validate assumptions
- Build a simulation to evaluate inventory policies under uncertainty
- Optimize trade-offs between service level and inventory cost
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
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Careers
Roles this prepares you for.
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