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ML & Forecasting · Retail

AI Pricing & Promotion Decision Engine

Commercial teams must decide what to promote and how deep to discount, with uncertain demand response.

My role
Solo project.
When
2025
promo action rankingshipped
PROMO ACTIONEXPECTED MARGIN UPLIFT (k€)margin floor−10% · coffee+18.4bundle · snacks+14.9−15% · dairy+12.22-for-1 · juice+9.8−20% · bakery+4.1−25% · frozen-1.4

+6.8%

simulated gross margin

11.2%

demand forecast MAPE

240 × 12

SKUs × stores simulated

18 mo

of synthetic sales history

Approach

Synthetic retail environment, time-aware model benchmarking, demand-response prediction, counterfactual simulation, and constraint-aware ranking of promo actions under a margin floor.

Results

On 18 months of synthetic sales for 240 SKUs across 12 stores, the engine's recommendations lifted simulated gross margin by 6.8% versus a rule-based promo calendar. Demand forecasts reach 11.2% MAPE with time-aware cross-validation.

Architecture

AI Pricing & Promotion Decision Engine — architecture diagram

Technical highlights

  • 01Synthetic retail environment with seasonality, promo effects, and price sensitivity
  • 02Regression families benchmarked with time-aware cross-validation
  • 03Constraint-aware decision engine with counterfactual scenarios and ranking

Stack

Pythonpandasscikit-learnLightGBMStreamlitSimulation
View code →

Building something similar?

hichamalaoui975@gmail.com