Key Notes
- Optimize for revenue / profit / market share
- Lose market share but retain profits
- Lose price but increase market share
- Standardize - Learn from business, Apply Algorithm
- Apply / Learn, Avoid fluctuations, inconsistencies
- Optimize - Know both win and lost scenarios
- For loss, how price can be pushed
- Explore - No more data to learn from
- AI solution to explore / Reinforcement learning problem
- Learn by itself (Rare occurrence)
- Working model - API
- Hosted model
- Web front end
- Building products
- Learned from historical data
- Business knowledge
- Existing Systems
- Sales Data
- Market Research
- Features - Pricing
- Perishability
- Premiumness
- Cost
- Frequency of Sale
- Seasonality
- Market features
- Feature Implementation
- Clustering, Encoding, Algorithms
- Algo choices
- Segmentation
- Segment dataset
- Data Driven Unsupervised method
Break things earlier if it saves us
Segmentation - Unsupervised vs Business Driven
- Business driven explainable
- Ownership
Category driven models - encoding
- One hot - Yes / No
- Factors - Assign numerical value, Ordering issues
- Binary - Introduce hierarchy, Reduce objects to describe objects
Base Algorithms
Depending on the time-series aspect
Code Optimization
POC mentality
Changes in the market - Time series and frequent retraining
Make model more time-dependent, time-series
Short term corrections
- LSTM to output median difference
- Different between regression model and error calculation
- Rolling average based correction
Production implementation
- Azure, Flask, Kubernetes
- Kubernetes deployed models
- Load balancers - Containers
Data feeds - Landing zone - Data Engineering - Consistency Check - Databricks layer
- API End point - Model in Flask - Data Pipeline
- Model confidence
Optimization methods
- Optimizing without data
- Price elasticity
- Use bands
- Historical data
- Quantiles
- Lower and upper bands
Elasticity
Price elasticity vs Sales forecast
Historical data for every value with respect to price
Pseudo cells, pdf distribution
Keep Thinking!!!
