AI BASED EXPIRY AWARE DYNAMIC DISCOUNT SYSTEM

Abstract

The rapid growth of the retail and supermarket industry has increased the need for intelligent inventory management systems that minimize product wastage while maximizing business profitability. One of the major challenges faced by retailers is the accumulation of products approaching their expiry dates, leading to financial losses, food waste, and inefficient stock management. Traditional methods of manually identifying and discounting nearexpiry products are time-consuming, inconsistent, and often fail to optimize pricing strategies. This project, AI-Based Expiry Aware Dynamic Discount System, proposes an intelligent solution that utilizes Artificial Intelligence (AI) and Machine Learning (ML) techniques to automatically recommend dynamic discounts for products based on their remaining shelf life, demand, inventory levels, and historical sales patterns. The system continuously analyzes product expiry information and predicts the optimal discount percentage that encourages faster sales while maintaining profitability. The proposed system integrates inventory management with predictive analytics to classify products according to their urgency for sale. Products nearing their expiry dates receive dynamically adjusted discounts instead of fixed markdowns, ensuring that pricing decisions are data-driven and responsive to real-time inventory conditions. Additionally, the system generates alerts for store managers regarding products requiring immediate attention and provides analytical dashboards for monitoring stock movement, sales performance, and wastage trends. Machine learning algorithms are employed to identify purchasing behavior and estimate the probability of selling products before expiry. By incorporating AI-driven decision-making, the system improves operational efficiency, reduces manual intervention, minimizes food and product waste, enhances customer satisfaction through attractive pricing, and increases overall revenue for retailers.