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AI & ML 15 min read 3.1 MB PDF

Amazon Chronos-2 Demand Forecasting Benchmarks

Comprehensive accuracy benchmarks for the 710M-parameter Chronos-2 transformer across 30,000 SKUs — WAPE, bias, quantile coverage, zero-shot cold-start, and few-shot adaptation.

Model Card: Amazon Chronos-2

Architecture

Type
Encoder-Decoder Transformer (T5-style)
Parameters
710M
Pre-training Data
100M+ Time Series
Tokenization
Quantile Binning (1024 Bins)
Context Length
512 Time Steps
Prediction Horizon
64 Steps (Configurable)
Output
Probabilistic: P10, P25, P50, P75, P90

Deployment

Server
Triton Inference Server (NVIDIA)
GPU
A10G (24GB) × 2 (HA)
Batch Inference
50K SKUs < 5ms (P99)
API
gRPC + REST
Format
ONNX (INT8 Quantized)
Quantization
INT8 (2× Throughput, <0.5% Loss)

Overall Accuracy Benchmarks (Production Data)

VerticalSKUsHorizonWAPEBiasP90 Coverage
Grocery/CPG12,00014-day97.4%+0.3%89.2%
Fashion/Apparel8,50014-day94.1%-1.2%87.8%
Electronics3,20014-day95.8%+0.8%90.1%
Pharma/OTC1,80014-day96.7%-0.5%91.3%
Spare Parts (Intermittent)4,50030-day89.2%+2.1%85.6%
Overall (Weighted)30,00014-day97.4%+0.2%89.7%

WAPE = Weighted Absolute Percentage Error — industry standard for demand forecasting accuracy.

Zero-Shot Cold-Start: New SKUs With Zero History

Zero-shot forecasting predicts demand for brand-new SKUs with zero historical sales data. Chronos-2 learns universal patterns from 100M+ series during pre-training — it infers seasonality, trend, and lifecycle from product attributes alone.

Zero-Shot Accuracy by Launch Type

ScenarioChronos-2 Zero-Shot MAPEBest Statistical (Proxy)Improvement
New Product Launch (CPG)18%45%60% better
Seasonal Fashion (No History)22%60%63% better
Intermittent Spare Parts35%80%56% better
Promotion-Driven Launch25%55%55% better

Zero-shot beats statistical models with 2 years of data for new SKUs.

Few-Shot Boost (10–50 Historical Points)

Data PointsZero-Shot MAPEFew-Shot MAPEImprovement
0 (Zero-Shot)22%Baseline
1022%16%27% better
5022%12%45% better

Probabilistic Forecasting: P10/P50/P90 in Action

Instead of a single point forecast, Chronos-2 outputs probabilistic quantiles:

P10 (Conservative)

90% chance actual demand ≤ this value. Use for conservative replenishment to avoid overstock.

P50 (Median)

50% chance actual demand ≤ this. Expected demand — baseline for planning.

P90 (Aggressive)

10% chance actual demand ≤ this. Use for safety stock sizing (Safety Stock = P90 - P50).

# Automated Safety Stock & PO Generation (Aetheria Inventory Service) forecast = chronos2.predict(sku, horizon=14_days) # Safety stock = P90 - P50 (covers 80% of demand variance) safety_stock = forecast.p90 - forecast.p50 # Reorder point = P50 × lead_time_days + safety_stock reorder_point = forecast.p50 * supplier.lead_time_days + safety_stock # Current stock from double-entry ledger current_stock = inventory_ledger.balance(sku, warehouse) # Auto-generate PO if below reorder point if current_stock <= reorder_point: po_qty = max(forecast.p50 * 30_days, supplier.moq) # 30-day cover purchasing.create_po(sku, po_qty, supplier, urgency="normal")

Data Pipeline & Feature Engineering

Beyond historical sales, Chronos-2 receives rich feature vectors:

Temporal Features

  • • Day-of-week, week-of-year, month
  • • Ramadan, Eid, Black Friday, National Day
  • • Payday cycles, fiscal quarters

Product Features

  • • Category hierarchy (L1→L4)
  • • Brand, price tier, lifecycle stage
  • • Attributes (size, color, material)

Promotional Features

  • • Discount %, promo type, start/end
  • • Competitor promo signals
  • • Historical promo lift coefficients

External Signals

  • • Weather (temp, humidity, precipitation)
  • • Holidays, economic indicators
  • • Competitor pricing (where available)

Model Governance & Retraining

Retraining Cadence
Weekly (incremental), Monthly (full)
Drift Detection
Population Stability Index (PSI) > 0.2 → Alert
Bias Correction
Online Isotonic Regression on Residuals
Champion/Challenger
A/B Test New Model on 5% Traffic
Rollback
Instant (Model Versioning in Registry)
Explainability
SHAP Values per SKU per Forecast