Beyond Accuracy: Evaluating Forecasting Models by Multi-Echelon Inventory Cost

Fuente: arXiv
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Main Authors: Marik, Swata, Saha, Swayamjit, Chatterjee, Garga
Format: Preprint
Published: 2026
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author Marik, Swata
Saha, Swayamjit
Chatterjee, Garga
author_facet Marik, Swata
Saha, Swayamjit
Chatterjee, Garga
contents This study develops a digitalized forecasting-inventory optimization pipeline integrating traditional forecasting models, machine learning regressors, and deep sequence models within a unified inventory simulation framework. Using the M5 Walmart dataset, we evaluate seven forecasting approaches and assess their operational impact under single- and two-echelon newsvendor systems. Results indicate that Temporal CNN and LSTM models significantly reduce inventory costs and improve fill rates compared to statistical baselines. Sensitivity and multi-echelon analyses demonstrate robustness and scalability, offering a data-driven decision-support tool for modern supply chains.
format Preprint
id arxiv_https___arxiv_org_abs_2603_16815
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Beyond Accuracy: Evaluating Forecasting Models by Multi-Echelon Inventory Cost
Marik, Swata
Saha, Swayamjit
Chatterjee, Garga
Artificial Intelligence
This study develops a digitalized forecasting-inventory optimization pipeline integrating traditional forecasting models, machine learning regressors, and deep sequence models within a unified inventory simulation framework. Using the M5 Walmart dataset, we evaluate seven forecasting approaches and assess their operational impact under single- and two-echelon newsvendor systems. Results indicate that Temporal CNN and LSTM models significantly reduce inventory costs and improve fill rates compared to statistical baselines. Sensitivity and multi-echelon analyses demonstrate robustness and scalability, offering a data-driven decision-support tool for modern supply chains.
title Beyond Accuracy: Evaluating Forecasting Models by Multi-Echelon Inventory Cost
topic Artificial Intelligence
url https://arxiv.org/abs/2603.16815