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“This can be a complicated formula, and one that changes market to market,” Balzer says. For instance, infused water or teas might sell more quickly in an urban location than in a rural market, whereas the opposite might be true for an energy drink. Developing the proper sets of products and optimizing storage space is critical to G&J Pepsi’s success.
The machine learning tool the company has developed, Cold Space Allocator, takes into account all of the variables and lays out an optimized product selection for each customer within each market. “It will also provide recommendations of products that might be outperforming in similar locations to replace slower selling products,” Balzer says. “Product optimization is an immense market advantage when done properly to meet consumer demands.” ....

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