Random Forest

Assembly Line

The history of Amazon’s forecasting algorithm

Date:

Topics: demand planning, random forest, natural language processing

Organizations: Amazon

Historical patterns can be leveraged to make decisions on inventory levels for products with predictable consumption patterns — think household staples like laundry detergent or trash bags. However, most products exhibit a variability in demand due to factors that are beyond Amazon’s control.

Today, Amazon’s forecasting team has drawn on advances in fields like deep learning, image recognition and natural language processing to develop a forecasting model that makes accurate decisions across diverse product categories. Arriving at this unified forecasting model hasn’t been the result of one “eureka” moment. Rather, it has been a decade-plus long journey.

Read more at Amazon Science