Demand and pricing

Demand planning and pricing, under real uncertainty

Forecasting, markdown and price decisions built as one system. Probabilistic where it matters, constrained by how the business actually operates, and deployed on the cadence planning already runs on.

Probabilistic forecast, one SKU

History, then the forecast as a fan. Inventory is planned against the fan, not the line in the middle: the width is the stockout risk on one side and the overstock on the other.

todayhistoryforecast

What this usually looks like

  • The forecast is a single number, and nobody plans inventory against a single number.
  • Markdown runs on rules written years ago that nobody wants to be the one to change.
  • Price elasticity was estimated once, on data that could not identify it.
  • Planners override the model every cycle, and no one has measured whether they are right.

What you get

Forecasts with uncertainty attached

Hierarchical where the data is sparse, probabilistic where the decision is asymmetric. Sized to the SKU and horizon the business actually plans on.

Decisions, not predictions

Markdown depth and timing, buy quantities, price moves. The output is what to do, with the forecast underneath it.

Constraints modelled honestly

Lifecycle limits, inventory positions, monotonic price response, contracted minimums. A recommendation nobody can execute is not a recommendation.

The handover

Backtests the team can rerun, drift controls, and documentation of every assumption that matters.

Depth

Mar 25, 2025

The predictive demand model: Bridging historical data and markdown optimization

How predictive demand models serve as the critical bridge between historical sales data and prescriptive markdown optimization, providing both demand estimates and uncertainty quantification

May 15, 2025

From lifecycle limits to markdown rules: The product constraints behind retail profit optimization

Why retailers can't escape markdown pricing—a deep dive into the lifecycle, inventory, and pricing constraints that shape modern retail optimization strategies

Jan 23, 2023

Optimizing Vitamin Product Pricing Through Discrete Choice Modeling

Using Bayesian demand modeling and mixed-integer programming to set optimal prices for a new product line — balancing revenue, cannibalization, and market share

Aug 15, 2026

Building a Customer-Brand Affinity Engine for Physical Retail

A technical architecture for customer-brand affinity in physical retail: customer windows, lift and PMI, Item2Vec embeddings, graph construction, constrained layout optimization, and causal validation.

Aug 15, 2026

Your Store Layout Is a Recommendation System

Department stores already have the data to rethink brand adjacency around real customer behaviour. The opportunity is not another dashboard, but a new merchandising decision system.

Jul 25, 2026

Your data lake is not the prerequisite

Why data science and AI platform projects fail on definitions, not on infrastructure, and how to let a real decision pull the data model into existence instead of waiting for the lake.

How it starts

Diagnostic first, build second.

01 · Decision System Diagnostic · From €12,000

Three months, one critical decision. We establish which decision the forecast serves, measure the baseline, test what the data can support, and design the operating cadence. You get evidence, a target architecture, and a costed roadmap.

02 · Design and build

Models, backtests, the decision layer on top, and the pipeline that runs it. Scoped from the roadmap, priced on the engagement.

03 · Operate and hand over

Monitoring, drift controls, documentation, and the training to run it without me.