I have a set of 10 variables all based around inventory optimization. Many of the variables are highly correlated. The ask is to determine the magnitude of the increase in one variable based on the change in several other variables. Is there an appropriate technique to estimate that?
I had thought about creating multiple regression models, however as the variables are highly correlated (and the variance inflation factors [VIFs] are HUGE) and I'm concerned that the model(s) would not be robust. Any suggestions here?