Using AI to Solve Complex Business Problems: Optimizing Fashion Industry Markdowns

Watch a 16-minute conference talk from Data Science Conference Europe 2022 where Pietro Quaglio demonstrates how AI-powered prescriptive analytics helped fashion retailers tackle unprecedented inventory challenges during the Covid-19 pandemic. Learn how combining elasticity demand modeling, forecast modeling, and linear programming created an automated markdown optimization system that effectively cleared surplus inventory while maintaining profit margins - overcoming traditional constraints around reticketing costs, branding requirements, and complex business rules. Discover how this innovative approach provided fashion companies with intelligent discount strategies when conventional seasonal markdown practices proved insufficient for managing the extraordinary inventory buildup caused by pandemic lockdowns.