Pivoting Retail Supply Chain with Deep Generative Techniques: Taxonomy, Survey, and Insights

Core Concepts

Generative AI applications like ChatGPT and DALL-E showcase the potential of Deep Generative Models (DGMs) in transforming retail supply chains by learning data distributions and generating new data points.

Abstract

The content delves into leveraging DGMs for modern retail supply chain challenges. It discusses the phases of purchase, logistics, and sell, highlighting the complexities and solutions using advanced methods like DGMs.
Key points include:

Introduction to DGMs like ChatGPT and DALL-E showcasing their capabilities.
Challenges in retail supply chain phases: purchase, logistics, and sell.
Applications of DGMs in demand forecasting, merchandising planning, inventory allocation, replenishment optimization, discrete event simulation, vehicle routing optimization, logistics network optimization, estimated time of arrival.
Utilizing LLMs for customer service automation and improving search and recommendation processes.
Various studies exploring the integration of DGMs in different aspects of the retail supply chain.

Stats

The paper discusses leveraging DGMs into modern retail supply chains.
Forecasting demand accurately is a challenge due to consumer behavior unpredictability.
Optimality gap poses issues affecting efficiency throughout the supply chain.
Various models like Autoregressive models and Flow-based models are used in explicit density modeling.
Variational Autoencoders (VAEs) approximate latent variables' posterior distribution efficiently.

Quotes

Key Insights Distilled From

Pivoting Retail Supply Chain with Deep Generative Techniques

by Yuan Wang,Lo... at arxiv.org 03-05-2024

https://arxiv.org/pdf/2403.00861.pdf

Deeper Inquiries

How can the use of Deep Generative Models impact traditional forecasting methods?

Deep Generative Models (DGMs) can have a significant impact on traditional forecasting methods by offering more accurate and flexible predictions. Unlike traditional methods that rely on predefined models and assumptions, DGMs have the ability to learn complex patterns and relationships within data without explicit programming. This allows them to capture nonlinear dependencies and uncertainties in the data, leading to more robust forecasts.
One key advantage of DGMs is their ability to model the underlying distribution of data, enabling them to generate new data points that are statistically similar to the original dataset. This capability can enhance forecasting accuracy by providing a more comprehensive understanding of the data dynamics.
Additionally, DGMs can adapt and learn from new information over time, making them suitable for dynamic environments where traditional models may struggle to keep up with changing trends. They also offer flexibility in handling different types of data modalities such as text, images, or sequences, allowing for a more holistic approach to forecasting.
Overall, integrating Deep Generative Models into traditional forecasting methods can lead to improved accuracy, adaptability, and efficiency in predicting future outcomes.

What are the potential drawbacks or limitations of integrating Deep Generative Models into retail supply chains?

While Deep Generative Models (DGMs) offer numerous benefits for retail supply chains, there are several potential drawbacks and limitations that need to be considered:

Complexity: Implementing DGMs requires expertise in deep learning techniques and computational resources. Retail organizations may face challenges in training and deploying these complex models effectively.

Data Requirements: DGMs often require large amounts of high-quality labeled data for training. Inadequate or biased datasets could lead to inaccurate predictions or reinforce existing biases present in the data.

Interpretability: The black-box nature of some DGMs makes it challenging to interpret how decisions are made or understand why certain predictions are generated. This lack of transparency could hinder trust among stakeholders.

Scalability: Scaling up DGM solutions across multiple locations or products within a retail supply chain may pose scalability issues due to increased computational demands and resource constraints.

Regulatory Compliance: Retail organizations must ensure compliance with regulations related...

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In conclusion...

How might advancements in Deep Generative Techniques influence customer engagement strategies beyond automated services?

Advancements in Deep Generative Techniques have the potential...