Forecasting cut stockouts 80% — for 16% higher cost.
A warehouse inventory policy tuned from historical averages versus one driven by a live demand forecast, running the identical trending, seasonal demand for a full simulated year.
Explore the tradeoff
Compare both policies across supplier lead times and service-level targets. Longer lead times are where forecasting earns its keep.
How the winning forecaster actually performs
Held out the last 30 of 180 historical days, forecast without seeing them. Holt-Winters tracks the weekly wave; it can't and doesn't pretend to predict one-off spikes like day 173.
View the data as a table
Why Holt-Winters won
Four forecasters, backtested with 6-fold walk-forward validation (never just a single train/test split). Naive and gradient boosting are legitimate contenders; Holt-Winters wins because the demand process has the exact trend + weekly seasonality shape it's built to model directly.
Phase 3 — routing the network
The twin grows into a network: two regional warehouses, four retail stores, and a squeeze — southern demand outgrows the South warehouse's fixed inbound capacity over the year. Same demand, same replenishment, same information; the only difference is how warehouse stock gets routed. A min-cost transportation LP re-routes ~8,000 units/year of northern slack southward and its plan feeds back into the twin's state — closing the forecast → optimize → simulate loop.
10 paired replications, 365-day horizon, identical seeds per pair. The LP (scipy HiGHS) minimizes
transport cost plus a shortage penalty over every warehouse–retail lane; it reaches zero stockout
days on every seed. Scenario: scenarios/network.json.