Forecasting from Counterfactual Simulator Rollouts: A Sim2Real Evaluation
Organizations: Amazon
Abstract
Deploying a new decision policy creates a cold-start problem for prediction models whose targets depend on the policy's actions: historical observations reflect earlier policies, while real observations under the new policy are not yet available. Simulation offers a way to address this gap by rolling out the target policy across counterfactual scenarios and using the resulting trajectories to learn how the system responds to those controls. The simulation-to-reality (Sim2Real) transfer of this simulator-trained model can then be backtested by evaluating it against real observations from past deployments. Using two real-world inventory-control deployments, we evaluate this process from three angles: simulator fidelity, zero-shot transfer to real behavior, and adaptation as real target-policy observations accumulate. The simulator-trained forecaster achieves lower point-estimate mean absolute percentage error (MAPE) than the same architecture trained on historical real data, reducing MAPE by 1.2-3.1 percentage points in Study 1 and 12.5-18.7 points in Study 2. After deployment, lightweight calibration using early real observations further reduces error by up to 2.5 percentage points. These results provide empirical evidence that simulator-generated counterfactual data can support cold-start forecasting under a new policy, and the resulting model can be further refined as real deployment data become available.
Figures & tables
| Component | Calibration slope (95% CI) | |
|---|---|---|
| Order quantity | ||
| Inbound | ||
| Inventory | ||
| Sales drain |
| Study | Training source | 1 week | 2 weeks | 3 weeks | 4–10 weeks |
|---|---|---|---|---|---|
| Study 1 | Simulator rollouts | ||||
| Study 1 | Historical (off-policy) | ||||
| Study 2 | Simulator rollouts | ||||
| Study 2 | Historical (off-policy) |
| Study | Variant | 1 week | 2 weeks | 3 weeks | 4–10 weeks |
|---|---|---|---|---|---|
| Study 1 | Zero-shot | ||||
| Study 1 | +Calibration | ||||
| Study 2 | Zero-shot | ||||
| Study 2 | +Calibration |
Appendix figures & tables9 assets
Supplementary material from the paper’s appendix.
Appendix
| Hyperparameter | Value | Notes |
| Optimization | ||
| Optimizer | Adam | |
| Learning rate | Fixed throughout | |
| Batch size | 3,000 | Products sampled per rollout; 5 cohorts per epoch |
| Cohort resampling | every 10 epochs | Uniform over the study population |
| Training epochs | 2,000 | |
| Exogenous variable | Coef. (95% CI) | |
|---|---|---|
| Demand | ||
| Price | ||
| Cost | ||
| Vendor lead time |
| One-step | Continuous | |||
|---|---|---|---|---|
| Component | Coef. (95% CI) | Coef. (95% CI) | ||
| Order quantity | ||||
| Inbound | ||||
| Inventory | ||||
| Sales drain | ||||
| Training Source | Eval Source | Model | 1 week | 2 weeks | 3 weeks | 4–10 weeks |
|---|---|---|---|---|---|---|
| Simulator (Study 1) | Simulator (Study 1) | Global Aggregate | ||||
| Simulator (Study 1) | Simulator (Study 1) | Bottom-Up | ||||
| Simulator (Study 2) | Simulator (Study 2) | Global Aggregate | ||||
| Simulator (Study 2) | Simulator (Study 2) | Bottom-Up | ||||
| Historical Real Data | Held-out Real Data | Global Aggregate | ||||
| Historical Real Data | Held-out Real Data | Bottom-Up |
| Training Source | Eval Source | Model | 1 week | 2 weeks | 3 weeks | 4–10 weeks |
|---|---|---|---|---|---|---|
| Simulator (Study 1) | Real (Study 1) | Global Aggregate | ||||
| Simulator (Study 1) | Real (Study 1) | Bottom-Up | ||||
| Simulator (Study 2) | Real (Study 2) | Global Aggregate | ||||
| Simulator (Study 2) | Real (Study 2) | Bottom-Up | ||||
| Off-policy Real Data | Real (Study 1) | Global Aggregate | ||||
| Off-policy Real Data | Real (Study 1) | Bottom-Up |
| Training Source | Eval Source | Model | 1 week | 2 weeks | 3 weeks | 4–10 weeks |
|---|---|---|---|---|---|---|
| Simulator (Study 1) | Real (Study 1) | Global Aggregate + Calib. | ||||
| Simulator (Study 1) | Real (Study 1) | Bottom-Up + Calib. | ||||
| Simulator (Study 2) | Real (Study 2) | Global Aggregate + Calib. | ||||
| Simulator (Study 2) | Real (Study 2) | Bottom-Up + Calib. | ||||
| Off-policy Real Data | Real (Study 1) | Global Aggregate + Calib. | ||||
| Off-policy Real Data | Real (Study 1) | Bottom-Up + Calib. |