WHAT WAS LOST: tracing unmet demand in contraceptive supply chains

Forecasting
Inventory
Loss Sales
R
Tobit Kalman Filter
Conformal Prediction
EURO 2025 Leeds, UK
Author

Harsha Halgamuwe Hewage

Published

June 24, 2025


Context

At the EURO 2025 conference in Leeds, we present our work on reconstructing true demand in family planning supply chains—where stockouts routinely censor observed data and distort decision-making. Standard forecasting tools treat these absences as lack of demand, leading to understocking and reinforcing supply failure.

We introduce a novel approach that integrates a Truncated Conformal Kalman Filter (TCKF) with simulation-based inventory evaluation. By correcting for both partial and full censorship and layering conformal prediction for distribution-free uncertainty, we recover latent demand more accurately and translate it into better ordering policies.

Through synthetic experiments and real data application, we show how ignoring censored demand underestimates both need and risk. Our results point toward a scalable framework for inventory management in fragile public health systems—where demand isn’t lost, just buried under broken assumptions.

Because “zero demand” doesn’t mean “zero need”—it often just means the shelves were empty.