Product Defect Detection System: SYSM- 5620 Final Project

Abstract

Retail sales is a growing market estimated to up to seven percent year over year. With this growing market there is also a trend in growing rate of retail returns, estimated just last year at $\$$850 billion. Retail stores must ensure that products available for purchase remain safe, undamaged, and acceptable to customers throughout their time in the store. This job exists regardless of the specific solution used because stores are always responsible for preventing damaged or defective products from reaching customers and when they fail to this is categorized under operation inefficiencies which accounts for an estimated $\$$12 billion in returns. When defective items remain on the sales floor, stores may experience increased returns, reduced customer satisfaction, loss of customer trust, and potential safety concerns depending on the product type. As a result, the core job to be done is to identify defective products quickly, remove them from the sales floor before they are purchased, and preserve useful information about the defect so that the store can improve its handling, stocking, and supplier coordination over time. The need for a more reliable process is especially important in high volume retail environments where employees manage large numbers of products across many aisles, shelves, and storage areas. In these settings, manual inspection alone can be inconsistent and difficult to sustain at the individual item level. At the same time, broader retail trends continue to emphasize operational efficiency, product visibility, and improved customer experience, creating an opportunity for more automated and data driven defect detection methods.