41st Meetup: Optical Lens Inventory Optimization Model

This study develops a machine learning framework to optimize inventory management for small optical chains, balancing stock levels and middleman reliance. Using Prophet and ARIMA for demand forecasting and linear programming for optimization, the model incorporates a Prescription Weighting System to translate forecasts into Rx-specific orders. Results show ARIMA outperforms Prophet in lower budgets, achieving profitability at $30k (+$34,475) versus Prophet requiring $40k. Middleman orders drop from 430 (Very Low budget) to 37 (High budget), while profits rise from-$303,654 to $35,617 at $40k. The framework offers a scalable solution to enhance profitability and reduce dependency on intermediaries.