Describe how you would develop a machine learning model to optimize inventory levels in a retail business.
Instruction: Explain your process, from understanding the business problem to deploying the model.
Context: This question tests the candidate's ability to apply machine learning in a supply chain context, focusing on inventory management and optimization.
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I would frame this as a decision problem, not just a forecasting problem. Demand prediction is important, but inventory optimization also depends on lead times, reorder policies, stockout cost, holding cost, perishability, and service-level targets...