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Case study / Applied machine learning

Commodity demand forecasting

A multi-model supply-and-demand forecasting system for one of the country’s leading avocado suppliers, evaluated against real purchasing decisions.

Production context
$100M+ commodity volume
Production context
3 years beating market
Production context
Multiple forecasting models
The challenge

The operating problem.

Perishable inventory, volatile supply, and uncertain market prices made purchasing decisions materially expensive to get wrong.

The engineering

What was built.

Multiple forecasting approaches were developed, compared, and combined around the purchasing decision so expected demand, changing market conditions, and uncertainty could be evaluated together.

Outcomes

What the system made possible.

  • Forecasts tied directly to purchasing decisions
  • Uncertainty treated as an input rather than hidden
  • A repeatable system that outperformed open-market buying over three years
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