Need advice on inventory planning for my capstone project.

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Hello everyone. I'm currently doing a capstone project at my university. In this project I'm working with a fashion company to address their inventory issue. They have big problems on pin pointing demand for specific products, so often end up over buying their inventory. My capstone instructor suggested we do a cluster analysis to see which products have similar demands. I'm also posting here to see what approach you guys would take to address this inventory issue

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