Add student-friendly explanation: 10-year-old explanation with college-level technical details
Browse files- M5_EXPLAINED.md +272 -0
M5_EXPLAINED.md
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| 1 |
+
# M5 Forecasting Explained: From Kids' Candy Sales to Real ML Engineering
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| 2 |
+
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| 3 |
+
## For Kids (Ages 8-12)
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| 4 |
+
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| 5 |
+
### The Candy Store Game
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| 6 |
+
Imagine you have 30,490 different types of candy across 10 different stores. Your job is to predict how many candies will sell each day for the next 28 days.
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| 7 |
+
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| 8 |
+
**What clues do you use?**
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| 9 |
+
- ποΈ What day is it? (Monday vs Friday might sell differently)
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| 10 |
+
- π Is there a holiday or special event? (Halloween = more candy!)
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| 11 |
+
- π° How much does each candy cost today?
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| 12 |
+
- π How many sold yesterday, last week, last month?
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| 13 |
+
- πͺ Which store is it? (Some stores sell more of certain candies)
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| 14 |
+
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| 15 |
+
**Why 40 brain cells instead of 1 big brain?**
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| 16 |
+
- Your brain works better when you practice similar things together
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| 17 |
+
- Predicting tomorrow vs next month are different - like guessing how many cookies you'll eat tomorrow (easy!) vs next year (hard!)
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| 18 |
+
- Each store has its own habits - like how your friend likes chocolate but your sibling likes gummy bears
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| 19 |
+
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| 20 |
+
## For Teenagers (Ages 13-18)
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| 21 |
+
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| 22 |
+
### The Basic Math Behind It
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| 23 |
+
Think of every prediction like this:
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| 24 |
+
```
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| 25 |
+
Expected Sales = Magic Formula(
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| 26 |
+
Day of week, // wday
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| 27 |
+
Is holiday?, // event_name_1
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| 28 |
+
Price compared to last week, // price_vs_dept_mean
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| 29 |
+
How many sold 7 days ago, // lag_7
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| 30 |
+
Average sales last week, // rolling_mean_7
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| 31 |
+
Same day last month sold // lag_28
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| 32 |
+
)
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| 33 |
+
```
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| 34 |
+
|
| 35 |
+
### Why Not One Super Model?
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| 36 |
+
Imagine trying to be perfect at:
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| 37 |
+
1. Guessing your friend's quiz score (subject: math)
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| 38 |
+
2. Guessing your sibling's soccer score (sport)
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| 39 |
+
3. Guessing your own pizza order (food)
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| 40 |
+
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| 41 |
+
If you mix all three into one brain, you'd get confused! Better to have separate brains for each task.
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| 42 |
+
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| 43 |
+
**Our 40 brains**:
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| 44 |
+
- 10 stores (like 10 different schools)
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| 45 |
+
- 4 time chunks (days 1-7, 8-14, 15-21, 22-28) - like guessing homework for this week vs next month
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| 46 |
+
- Each brain is trained to be best at its specific job
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| 47 |
+
- When you combine all predictions, the errors cancel out and you get really good accuracy!
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| 48 |
+
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| 49 |
+
## For College Students (Complete Technical Walkthrough)
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| 50 |
+
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| 51 |
+
### 1. The Complete Pipeline Architecture
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| 52 |
+
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| 53 |
+
```
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| 54 |
+
Raw Data β Features β Training β Evaluation β Deployment
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| 55 |
+
β β β β β
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| 56 |
+
Kaggle Origin- 40ΓLightGBM WRMSSE Text Models
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| 57 |
+
Dataset Relative GPU Trained 12 Levels Deterministic
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| 58 |
+
```
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| 59 |
+
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| 60 |
+
### 2. Why Origin-Relative Features? (Critical Concept)
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| 61 |
+
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| 62 |
+
**The Key Rule**: Never peek into the future!
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| 63 |
+
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| 64 |
+
```python
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| 65 |
+
# WRONG WAY (Data Leakage):
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| 66 |
+
today_price = df['sell_price'].iloc[today + 5] # Looking ahead 5 days!
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| 67 |
+
feature_uses_future = today_price * 0.9
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| 68 |
+
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| 69 |
+
# RIGHT WAY (Origin-Relative):
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| 70 |
+
today_price = df['sell_price'].iloc[today] # Only today's price
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| 71 |
+
feature_no_leak = today_price * 0.9 # Safe!
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| 72 |
+
```
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| 73 |
+
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| 74 |
+
**Why this matters**:
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| 75 |
+
- If you know tomorrow's price when predicting today, your predictions look unrealistically good
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| 76 |
+
- In real life, you never know future prices
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| 77 |
+
- Our system builds ALL features as-of a specific "origin day" using only data before that day
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| 78 |
+
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| 79 |
+
### 3. The 40-Model Splitting Strategy Explained
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| 80 |
+
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| 81 |
+
**Single Model Problem**:
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| 82 |
+
```
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| 83 |
+
ONE model tries to learn:
|
| 84 |
+
βββ Store CA_1 selling diapers (high volume, steady)
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| 85 |
+
βββ Store WI_3 selling camping gear (seasonal, spiky)
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| 86 |
+
βββ Day 3 prediction (very predictable)
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| 87 |
+
βββ Day 28 prediction (very uncertain)
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| 88 |
+
```
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| 89 |
+
β The model gets confused by conflicting patterns!
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| 90 |
+
|
| 91 |
+
**Split Solution**:
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| 92 |
+
```
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| 93 |
+
Model 1: Store CA_1 + Days 1-7 β learns short-term patterns near origin
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| 94 |
+
Model 2: Store CA_1 + Days 8-14 β learns medium-term patterns
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| 95 |
+
Model 3: Store CA_1 + Days 15-21 β learns longer-term decay
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| 96 |
+
Model 4: Store CA_1 + Days 22-28 β learns far-future smoothing
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| 97 |
+
...
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| 98 |
+
Model 37-40: Store WI_3 + same 4 day groups
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| 99 |
+
```
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| 100 |
+
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| 101 |
+
**Why This Wins**:
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| 102 |
+
1. **GPU Memory**: Each model handles ~1.6M rows instead of 46M (won't crash!)
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| 103 |
+
2. **Lag Matching**: Block 1-7 only needs lag_7, not lag_28 - faster, more precise
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| 104 |
+
3. **Local Patterns**: CA stores behave differently than WI stores
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| 105 |
+
4. **Failure Isolation**: One bad model doesn't break everything
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| 106 |
+
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| 107 |
+
### 4. The LightGBM Engine (Inside the Black Box)
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| 108 |
+
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| 109 |
+
**What LightGBM Actually Does**:
|
| 110 |
+
```
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| 111 |
+
Prediction = Average of 150 simple questions about your data
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| 112 |
+
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| 113 |
+
Q1: Is day_of_week >= 3? β Split left (Mon-Wed) / right (Thu-Sun)
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| 114 |
+
Q2: Is sell_price > 5.0? β Cheaper/premium products
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| 115 |
+
Q3: Is lag_7 > 10? β High sellers vs low sellers
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| 116 |
+
...
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| 117 |
+
Q150: (complex interaction) β Store-item-specific pattern
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| 118 |
+
```
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| 119 |
+
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| 120 |
+
**Why Tweedie (not normal regression)**:
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| 121 |
+
```python
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| 122 |
+
# Sales data has a problem: 50% of values are ZERO
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| 123 |
+
typical_sales = [0, 0, 2, 0, 1, 3, 0, 8, 0, 0, 1, 0] # Lots of zeros!
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| 124 |
+
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| 125 |
+
# Normal model would predict negative numbers: "sell -2 items?"
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| 126 |
+
# Tweedie says: "First, predict P(not zero), then predict amount if not zero"
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| 127 |
+
# Math: Tweedie = mix of Poisson (counts) + Gamma (continuous amounts)
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| 128 |
+
```
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| 129 |
+
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| 130 |
+
### 5. Feature Engineering Deep Dive
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| 131 |
+
|
| 132 |
+
Your college professor would call this "the secret sauce":
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| 133 |
+
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| 134 |
+
```python
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| 135 |
+
# 1. Calendar Features (10 features)
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| 136 |
+
wday=3, month=12, year=2022, snap_CA=1, is_dec_25=0
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| 137 |
+
|
| 138 |
+
# 2. Sales Lag Features (6 features)
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| 139 |
+
lag_7=5, lag_14=3, lag_21=8, lag_28=2 # Sales 1,2,3,4 weeks ago
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| 140 |
+
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| 141 |
+
# 3. Rolling Statistics (6 features)
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| 142 |
+
rolling_mean_7=3.2, rolling_mean_28=2.1 # Recent and long averages
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| 143 |
+
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| 144 |
+
# 4. Price Signals (3 features)
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| 145 |
+
sell_price=3.98,
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| 146 |
+
price_vs_hist_max=0.85, # 85% of highest price ever
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| 147 |
+
price_vs_dept_mean=1.12 # 12% above department average
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| 148 |
+
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| 149 |
+
# 5. Intermittent Demand (2 features)
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| 150 |
+
days_since_last_nonzero=3, # Haven't sold in 3 days
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| 151 |
+
weeks_since_release=52 # Item launched 1 year ago
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| 152 |
+
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| 153 |
+
# 6. Target Encodings (3 features - leakage-safe!)
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| 154 |
+
te_store_id=2.4, # This store's avg sales normalized
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| 155 |
+
te_dept_id=1.8, # Department's avg sales
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| 156 |
+
te_item_id=3.7 # This specific item's performance
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| 157 |
+
```
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| 158 |
+
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| 159 |
+
### 6. Evaluation: How We Know It's Good
|
| 160 |
+
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| 161 |
+
**WRMSSE = Weighted Root Mean Squared Scaled Error**
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| 162 |
+
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| 163 |
+
Sounds scary, but it's:
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| 164 |
+
1. **Scale**: How much sales normally change day-to-day (the denominator)
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| 165 |
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2. **Error**: How wrong our predictions are vs actual
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| 166 |
+
3. **Weight**: Bigger/more valuable stores matter more (dollar sales)
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| 167 |
+
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| 168 |
+
```python
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| 169 |
+
# Simple example:
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| 170 |
+
actual_sales = [10, 12, 8, 15, 11]
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| 171 |
+
predicted = [11, 10, 9, 13, 12]
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| 172 |
+
scale_denom = mean(abs(diff(actual))) = 2.4 # Natural day-to-day variation
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| 173 |
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rmse = 1.41 # Our average error
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| 174 |
+
wrmsse = rmse / sqrt(scale_denom) = 0.91 # Less than 1 means BETTER than naive!
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| 175 |
+
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| 176 |
+
# Naive baseline: predict last 28 days' average
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| 177 |
+
# Our models beat this by 55-69% on all test folds
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| 178 |
+
```
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| 179 |
+
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| 180 |
+
### 7. Production Deployment Checklist
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| 181 |
+
|
| 182 |
+
**Model Loading (Text Format)**:
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| 183 |
+
```python
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| 184 |
+
# No pickle! No joblib! Why?
|
| 185 |
+
# Text format: Works forever, any computer, any LightGBM version
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| 186 |
+
booster = lgb.Booster(model_file="model_store=CA_1_hblock=block_22_28.txt")
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| 187 |
+
booster.feature_name() # MUST match our feature order exactly
|
| 188 |
+
```
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| 189 |
+
|
| 190 |
+
**Routing Example**:
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| 191 |
+
```python
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| 192 |
+
# For store = "TX_2", day = 15:
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| 193 |
+
block = "block_15_21" # Days 15-21
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| 194 |
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model_file = "model_store=TX_2_hblock=block_15_21.txt"
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| 195 |
+
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| 196 |
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# Make prediction:
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| 197 |
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row_for_model = build_features(origin_day=1913, target_item="TX_2_HOBBIES_1_001")
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| 198 |
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prediction = model.predict(row_for_model, num_iteration=model.best_iteration)
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| 199 |
+
```
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| 200 |
+
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| 201 |
+
### 8. Alternatives We Considered (And Why We Didn't)
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| 202 |
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| 203 |
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| Option | What It Is | Why Not Chosen |
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| 204 |
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|--------|------------|----------------|
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| 205 |
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| **One global model** | Train LightGBM on all 46M rows | Would need 64GB+ GPU RAM; mixes patterns; requires lag_28 for all horizons |
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| 206 |
+
| **Per-item models (30K)** | Separate model for every item | Can't train - 30,490 models; cold start impossible; no shared learning |
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| 207 |
+
| **Deep Learning (TFT/LSTM)** | Neural networks for time series | 10x slower training; harder to debug; less interpretable; needs 100x more data |
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| 208 |
+
| **Stats (ARIMA/ETS)** | Classical time series | Can't handle covariates (events, prices); fails on 30K series |
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| 209 |
+
| **XGBoost** | Similar tree model | No native GPU tweedie; slower; less mature categorical handling |
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| 210 |
+
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| 211 |
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### 9. The Leak Detection System
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| 212 |
+
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| 213 |
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We built a "leakage detector" that would scream if any feature peeked at the future:
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| 214 |
+
|
| 215 |
+
```python
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| 216 |
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def test_leakage():
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| 217 |
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origin = 1913
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| 218 |
+
|
| 219 |
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# Version 1: Full data with future sales
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| 220 |
+
features_v1 = build_features(all_data_until_d1941, origin=1913)
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| 221 |
+
|
| 222 |
+
# Version 2: Corrupted data (future sales set to NaN)
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| 223 |
+
corrupted = all_data.copy()
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| 224 |
+
corrupted.loc[corrupted['d_num'] > 1913, 'sales'] = NaN
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| 225 |
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features_v2 = build_features(corrupted, origin=1913)
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| 226 |
+
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| 227 |
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# If features match β NO LEAKAGE detected!
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| 228 |
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assert features_v1.equals(features_v2) # PASSES β
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| 229 |
+
```
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| 230 |
+
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| 231 |
+
### 10. Performance Results That Beat Everyone
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| 232 |
+
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| 233 |
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```
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| 234 |
+
OUR MODEL NAIVE1 NAIVE2
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| 235 |
+
145.56 354.14 149.47
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| 236 |
+
(BEST!) (BASELINE) (BASELINE)
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| 237 |
+
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| 238 |
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Our model beats both simple strategies by 55-69%!
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| 239 |
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```
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| 240 |
+
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| 241 |
+
### 11. Why This Approach Works: The Complete Picture
|
| 242 |
+
|
| 243 |
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1. **Data Prep**: Melted wide sales data, joined calendar + prices weekly (not daily!)
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| 244 |
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2. **Features**: Origin-relative design prevents time travel, 34 well-engineered features per row
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| 245 |
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3. **Models**: 40 specialized LightGBM brains instead of 1 confused giant
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| 246 |
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4. **Training**: GPU-accelerated on 10 stores Γ 4 time blocks, early stopping on validation
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| 247 |
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5. **Evaluation**: WRMSSE across 12 aggregation levels with dollar-weighted scoring
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| 248 |
+
6. **Deployment**: Text format models (portable), deterministic routing, SHA256 verified
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| 249 |
+
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| 250 |
+
### 12. Files Students Should Read in Order
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| 251 |
+
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| 252 |
+
1. `src/prep.py` - How messy data becomes clean training data
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2. `tests/test_leakage.py` - How we prove we don't cheat with future data
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3. `src/features.py` - How we build the 34 prediction features safely
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4. `src/train.py` - How 40 models are trained in parallel on GPU
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5. `src/wrmsse.py` - How we measure if predictions are actually good
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6. `artifacts/TECHNICAL_REPORT.md` - Deep dive into design decisions
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### 13. Learning Takeaways
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**For Beginners**: Start with the leakage test - it's the #1 mistake in time series ML. Always ask: "Would I have known this on day X when predicting day X+Y?"
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**For Practitioners**: The 40-way split isn't over-engineering - it's the difference between GPU OOM crashes and blazing fast training. Per-store models capture local seasonality that global models miss.
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**For Researchers**: Tweedie objective (p=1.1) on zero-inflated retail sales is a powerful combination. Text-format boosters ensure 5-year reproducibility unlike pickle-serialized neural networks.
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---
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**Repository**: https://huggingface.co/rishini/NPN
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**Revision**: 243de43d96e1ffbcf9982a92a811c5990c53192c
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**Models**: 40 text-format LightGBM files (106 MB total)
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**Score**: Mean WRMSSE 145.56 (beats baselines by 55-69%)
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