Jurnal Inkofar
Vol. 10 No. 1 (2026)

Explainable Hierarchical Retail Demand Forecasting With Time-Series Foundation Models: Comparison With Statistical And Machine Learning Methods

Abdul Rohim (STMIK Al Muslim)
Novi Wulandari (STMIK Al Muslim)



Article Info

Publish Date
31 Jul 2026

Abstract

Background Retail demand forecasting across multiple aggregation levels is essential for consistent strategic and operational decision-making. Purpose This study develops an explainable hierarchical forecasting framework for weekly retail sales using Seasonal Naive, XGBoost, and LightGBM base models with Base Forecast, Bottom-Up, MinT-OLS, and MinT-Shrink reconciliation. Methodology Unlike single-level retail studies, the framework jointly evaluates accuracy, cross-level coherence, and TreeSHAP interpretability at total, category, and subcategory levels under leakage-safe temporal validation. The Kaggle Superstore Sales Analysis dataset was aggregated into 209 weekly periods containing one total-sales series, three category series, and 17 subcategory series. Findings The final four weeks were reserved as a strict holdout, while the preceding 205 weeks were evaluated using five expanding-window rolling-origin folds with a four-week horizon. LightGBM with MinT-OLS was selected by cross-validation, achieving an MAE of 1,344.3577, RMSE of 2,465.7518, WAPE of 48.4886%, MASE of 2.5970, and zero coherence error. When refitted on the full development period, the selected configuration achieved a holdout WAPE of 63.9589%. TreeSHAP identified rolling_mean_13, lag_52, rolling_mean_8, rolling_std_13, and lag_26 as the strongest predictors. Implications The dependence plot revealed a nonlinear increase in the contribution of rolling_mean_13, moderated by annual-lag conditions. Originality These results demonstrate that reconciliation can improve volume-weighted accuracy and eliminate contradictory forecasts, although intermittent subcategory demand and holdout variability remain important limitations.  

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1

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Description

INKOFAR Journal is an international peer-reviewed journal published by Politeknik META Industri Cikarang. The journal provides a scientific platform for academics, researchers, practitioners, and professionals to publish original research articles, review papers, case studies, and applied research ...