Which model is best?
While the increased complexity of AI/ML models can yield more accurate demand forecasts in some cases, tradeoffs in the difficulty of implementation mean that the nuances of your products determine which model will yield the best results for you. So, how do you go about choosing the right model, or set of models, for your business?
Weighing each model’s pros and cons is a start, but your products might not neatly fit into a single type. To work around this limitation, it’s also possible to build an ensemble model, which takes models from multiple different classes and averages across them. This approach has the benefit of incorporating effects generated from each of methodology; similar effects are strengthened, while inconsistent effects are canceled out.