Interpreting direct sales’ demand forecasts using SHAP values

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Main Author: Mariana Arboleda-Florez
Format: Artículo científico
Language:en
Published: Associação Brasileira de Engenharia de Produção 2023
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author Mariana Arboleda-Florez
author_facet Mariana Arboleda-Florez
contents Interpreting direct sales’ demand forecasts using SHAP values Mariana Arboleda-Florez Carlos Castro-Zuluaga Ingeniería Machine learning Sales forecasting Explainable Artificial Intelligence Paper aims Several concerns regarding the lack of interpretability of machine learning models obstruct the implementation of machine learning projects as part of the demand forecasting process. This paper presents a methodology to support the introduction of machine learning into the forecasting process of a traditional direct sales company by providing explanations for the otherwise obscure results. We also suggest incorporating human knowledge inside the machine learning pipeline as an essential part of capturing the business logic and integrating machine learning into the existing processes.Originality Using explainable machine learning methods on real-life company data demonstrates that machine learning techniques are functional beyond the academy and can be introduced to everyday companies' production.Research method The project used real-world data from a company and followed a traditional machine learning pipeline to collect, preprocess, select and train a machine learning model, to conclude with the explanation of the model results through the implementation of SHAPMain findings The results provided insights regarding the contribution of the features to the forecast. We analyzed individual predictions to understand the behavior of different variables, proving helpful when interpreting complex machine learning models.Implications for theory and practice This study contributes to a discussion about adopting new technology and implementing machine learning models for demand forecasting. The methodology presented in this paper can be used to implement similar projects on interested companies. 2023 artículo científico 0103-6513 https://www.redalyc.org/articulo.oa?id=396773998002 https://www.redalyc.org/journal/3967/396773998002/ https://www.redalyc.org/journal/3967/396773998002/html/ https://www.redalyc.org/journal/3967/396773998002/396773998002.epub https://www.redalyc.org/journal/3967/396773998002/movil 10.1590/0103-6513.20220035 en http://www.redalyc.org/revista.oa?id=3967 Production application/pdf Associação Brasileira de Engenharia de Produção Production (Brasil) Vol.33
format Artículo científico
id redalyc_396773998002
institution Redalyc
language en
publishDate 2023
publisher Associação Brasileira de Engenharia de Produção
spellingShingle Interpreting direct sales’ demand forecasts using SHAP values
Mariana Arboleda-Florez
Ingeniería
Machine learning
Sales forecasting
Explainable Artificial Intelligence
Interpreting direct sales’ demand forecasts using SHAP values Mariana Arboleda-Florez Carlos Castro-Zuluaga Ingeniería Machine learning Sales forecasting Explainable Artificial Intelligence Paper aims Several concerns regarding the lack of interpretability of machine learning models obstruct the implementation of machine learning projects as part of the demand forecasting process. This paper presents a methodology to support the introduction of machine learning into the forecasting process of a traditional direct sales company by providing explanations for the otherwise obscure results. We also suggest incorporating human knowledge inside the machine learning pipeline as an essential part of capturing the business logic and integrating machine learning into the existing processes.Originality Using explainable machine learning methods on real-life company data demonstrates that machine learning techniques are functional beyond the academy and can be introduced to everyday companies' production.Research method The project used real-world data from a company and followed a traditional machine learning pipeline to collect, preprocess, select and train a machine learning model, to conclude with the explanation of the model results through the implementation of SHAPMain findings The results provided insights regarding the contribution of the features to the forecast. We analyzed individual predictions to understand the behavior of different variables, proving helpful when interpreting complex machine learning models.Implications for theory and practice This study contributes to a discussion about adopting new technology and implementing machine learning models for demand forecasting. The methodology presented in this paper can be used to implement similar projects on interested companies. 2023 artículo científico 0103-6513 https://www.redalyc.org/articulo.oa?id=396773998002 https://www.redalyc.org/journal/3967/396773998002/ https://www.redalyc.org/journal/3967/396773998002/html/ https://www.redalyc.org/journal/3967/396773998002/396773998002.epub https://www.redalyc.org/journal/3967/396773998002/movil 10.1590/0103-6513.20220035 en http://www.redalyc.org/revista.oa?id=3967 Production application/pdf Associação Brasileira de Engenharia de Produção Production (Brasil) Vol.33
title Interpreting direct sales’ demand forecasts using SHAP values
topic Ingeniería
Machine learning
Sales forecasting
Explainable Artificial Intelligence
url https://www.redalyc.org/articulo.oa?id=396773998002
https://www.redalyc.org/journal/3967/396773998002/
https://www.redalyc.org/journal/3967/396773998002/html/
https://www.redalyc.org/journal/3967/396773998002/396773998002.epub
https://www.redalyc.org/journal/3967/396773998002/movil