• Gather sales data, inventory levels, and supplier information from internal

1 Data Collection databases.

• Schedule daily data extraction process.

• Clean the data to remove any inconsistencies or errors.

2 Data Preprocessing • Normalize numerical data to a standard scale.
• Encode categorical variables for analysis.

• Extract relevant features from the sales, inventory, and supplier data.
• Engineer new features based on domain knowledge (e.g., seasonal trends,
3 Feature Engineering product categories).
• Incorporate time-series features for analyzing trends and patterns.

• Choose appropriate AI/ML algorithms for forecasting sales, optimizing

4 Model Selection and inventory levels, and predicting supplier behavior.
Training • Split the data into training and testing sets for model validation.
• Train the selected models using the prepared datasets

• Perform hyper parameter tuning to optimize model performance.

Optimization and
5 • Apply techniques such as cross-validation to assess model generalization.
Fine-Tuning • Explore ensemble methods or model stacking for improved accuracy.

• Deploy trained models into production for daily forecasting and inventory
optimization.
6 Deployment and • Implement monitoring systems to track model performance and detect
Monitoring anomalies.
• Set up alerts for actionable insights or model recalibration.

• Interpret model predictions and insights to inform decision-making.

• Generate reports or dashboards highlighting key findings and
Interpretation and
7 recommendations.
Actionable Insights • Collaborate with stakeholders to implement recommended actions for
improving supply chain efficiency and performance.