Demand forecasting-driven dynamic pricing
An end-to-end retail system that forecasts SKU-store demand, then uses optimization to convert demand, competitor-price and inventory signals into dynamic price recommendations.
Business problem
Forecast SKU-store demand at retail scale and turn those forecasts into optimized price recommendations that account for competitor position, inventory and commercial signals.
Data & scale
More than 200 stores, over 20,000 SKUs, competitor prices collected every two hours and more than 10 billion model-training records processed through the feature pipeline.
Two-stage approach
- Scalable ETL and leakage-aware feature engineering across SKU-store histories.
- Demand forecasting with temporal, lag, rolling, promotion, inventory and competitor-price features.
- Baseline comparison, automated model tuning and explainability for forecast quality.
- An optimization layer that converts forecast outputs and commercial constraints into dynamic price recommendations.
Measured forecasting result
The tuned forecasting model reduced RMSE by 21% versus the baseline. The stronger demand signal then feeds the price-optimization stage, separating model accuracy from the quality of the final pricing decision.
Production lens
The system is designed as two connected, independently evaluable stages: scalable demand forecasting followed by dynamic-price optimization across 200+ stores and 20,000+ SKUs.