IAES International Journal of Artificial Intelligence (IJ-AI)
Vol 11, No 3: September 2022

Hardware sales forecasting using clustering and machine learning approach

Rani Puspita (Bina Nusantara University)
Lili Ayu Wulandhari (Bina Nusantara University)



Article Info

Publish Date
01 Sep 2022

Abstract

This research is a case study of an information technology (IT) solution company. There is a problem that is quite crucial in the hardware sales strategy which makes it difficult for the company to predict the number of various items that will be sold and also causes the excess or shortage in hardware stocking. This research focuses on clustering to group various of items and forecast the number of items in each cluster using a machine learning approach. The methods used in clustering are k-means clustering, agglomerative hierarchical clustering (AHC), and gaussian mixture models (GMM), and the methods used in forecasting are autoregressive integrated moving average (ARIMA) and recurrent neural network-long short-term memory (RNN-LSTM). For clustering, k-means uses two attributes, namely "Quantity and Stock" as the best feature in this case study. Using these features the k-means obtain silhouette results of 0.91 and davies bouldin index (DBI) values of 0.34 consisting of 3 clusters. While for forecasting, RNN-LSTM is the best method, where it produces more cost savings than the ARIMA method. The percentage of the difference in saving costs between ARIMA and RNN-LSTM to the actual cost is 83%.

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Journal Info

Abbrev

IJAI

Publisher

Subject

Computer Science & IT Engineering

Description

IAES International Journal of Artificial Intelligence (IJ-AI) publishes articles in the field of artificial intelligence (AI). The scope covers all artificial intelligence area and its application in the following topics: neural networks; fuzzy logic; simulated biological evolution algorithms (like ...