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Magazine Supply Optimization: a Case-study

2024/08/16 by Duong Nguyen, Nguyen, Duong, Ana Ulianovici +7
Business, Management and Accounting · Engineering · #Artificial Intelligence (cs.AI) #Consumer Market Behavior and Pricing #FOS: Computer and information sciences #FOS: Mathematics #Optimization and Control (math.OC) #Optimization and Packing Problems

paper · pdf · doi:10.48550/arxiv.2408.08637

openalex publication_date 2024/08/16 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

Supply optimization is a complex and challenging task in the magazine retail industry because of the fixed inventory assumption, irregular sales patterns, and varying product and point-of-sale characteristics. We introduce AthenIA, an industrialized magazine supply optimization solution that plans the supply for over 20,000 points of sale in France. We modularize the supply planning process into a four-step pipeline: demand sensing, optimization, business rules, and operating. The core of the solution is a novel group conformalized quantile regression method that integrates domain expert insights, coupled with a supply optimization technique that balances the costs of out-of-stock against the costs of over-supply. AthenIA has proven to be a valuable tool for magazine publishers, particularly in the context of evolving economic and ecological challenges.

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