-
CiteScore
1.08
Impact Factor
IECE Transactions on Intelligent Systematics, 2024, Volume 1, Issue 3: 112-126

Free Access | Research Article | 20 October 2024
1 Computer Science Department, Lahore Leads University, Lahore 54130, Pakistan
2 Information Technology Department, Lahore Leads University, Lahore 54130, Pakistan
* Corresponding author: Muhammad Hasnain, email: [email protected]
Received: 15 September 2024, Accepted: 03 October 2024, Published: 20 October 2024  

Abstract
We investigate the use of deep learning models for retail sales predictions in this research. Having a proper sales forecasting can lead to optimization in inventory management, marketing strategies, and other core business operations. This research proposed to assess deep learning models such as Convolutional Neural Network (CNN), Long Short-Term Memory (LSTM), Multilayer Perceptron and hybrid CNN-LSTM model. The models are further improved by using some dense layers to embed daily sales data from the biggest pharmaceutical firm in the study. Models are then trained on 80% of the dataset and tested on remaining 20%. The accuracy of the proposed research is compared using evaluation metrics like Root Mean Square Error (RMSE) and Mean Absolute Error (MAE). The results indicate that the CNN-LSTM model outperforms the others, achieving the lowest RMSE and MAE values, making it the most suitable for sales forecasting in the given context. This research contributes to the field by demonstrating the superiority of hybrid models in handling complex, temporal data for predictive analytics. Future work will explore the integration of additional data sources and advanced deep learning architectures to further improve forecasting accuracy and applicability.

Graphical Abstract
Comparison of Deep Learning Algorithms for Retail Sales Forecasting

Keywords
sales forecasting
deep learning
CNN
LSTM
retail analytics

References

[1]Gandhi, M. A., Maharram, V. K., Raja, G., Sellapaandi, S. P., Rathor, K., & Singh, K. (2023, July). A novel method for exploring the store sales forecasting using fuzzy Pruning LS-SVM approach. In 2023 2nd International Conference on Edge Computing and Applications (ICECAA) (pp. 537-543). IEEE.

[2]Basha, C. Z., Bhavana, N., Bhavya, P., & Sowmya, V. (2020, July). Rainfall prediction using machine learning & deep learning techniques. In 2020 international conference on electronics and sustainable communication systems (ICESC) (pp. 92-97).

[3]Sohrabpour, V., Oghazi, P., Toorajipour, R., & Nazarpour, A. (2021). Export sales forecasting using artificial intelligence. Technological Forecasting and Social Change, 163, 120480.

[4]Jung, Y., Jung, J., Kim, B., & Han, S. (2020). Long short-term memory recurrent neural network for modeling temporal patterns in long-term power forecasting for solar PV facilities: Case study of South Korea. Journal of Cleaner Production, 250, 119476.

[5]Isabona, J., Imoize, A. L., Ojo, S., Karunwi, O., Kim, Y., Lee, C. C., & Li, C. T. (2022). Development of a multilayer perceptron neural network for optimal predictive modeling in urban microcellular radio environments. Applied Sciences, 12(11), 5713.

[6]Revathi, B. S., & Kowshalya, A. M. (2022). A REVIEW ON IMAGE CAPTIONING SYSTEM FROM ARTIFICIAL INTELLIGENCE, MACHINE LEARNING AND DEEP LEARNING TECHNIQUES. I-Manager's Journal on Image Processing, 9(3).

[7]Fildes, R., Ma, S., & Kolassa, S. (2022). Retail forecasting: Research and practice. International Journal of Forecasting, 38(4), 1283-1318.

[8]Gupta, R., Srivastava, D., Sahu, M., Tiwari, S., Ambasta, R. K., & Kumar, P. (2021). Artificial intelligence to deep learning: machine intelligence approach for drug discovery. Molecular diversity, 25, 1315-1360.

[9]Charles, M., & Ochieng, S. B. (2023). Strategic outsourcing and firm performance: a review of literature. International Journal of Social Science and Humanities Research (IJSSHR) ISSN, 2959-7056.

[10]Raji, M. A., Olodo, H. B., Oke, T. T., Addy, W. A., Ofodile, O. C., & Oyewole, A. T. (2024). Real-time data analytics in retail: A review of USA and global practices. GSC Advanced Research and Reviews, 18(3), 059-065.

[11]Korkmaz, C., Kocas, H. E., Uysal, A., Masry, A., Ozkasap, O., & Akgun, B. (2020, November). Chain fl: Decentralized federated machine learning via blockchain. In 2020 Second international conference on blockchain computing and applications (BCCA) (pp. 140-146). IEEE.

[12]Islam, S., & Amin, S. H. (2020). Prediction of probable backorder scenarios in the supply chain using Distributed Random Forest and Gradient Boosting Machine learning techniques. Journal of Big Data, 7(1), 65.

[13]Chelliah, B. J., Latchoumi, T. P., & Senthilselvi, A. (2024). Analysis of demand forecasting of agriculture using machine learning algorithm. Environment, Development and Sustainability, 26(1), 1731-1747.

[14]Xu, W., Cao, Y., & Chen, R. (2024). A multimodal analytics framework for product sales prediction with the reputation of anchors in live streaming e-commerce. Decision Support Systems, 177, 114104.

[15]Zaki, A. M., Khodadadi, N., Lim, W. H., & Towfek, S. K. (2024). Predictive analytics and machine learning in direct marketing for anticipating bank term deposit subscriptions. American Journal of Business and Operations Research, 11(1), 79-88.

[16]Rao, F. A., Muneer, A., Almaghthawi, A., Alghamdi, A., Fati, S. M., & Ghaleb, E. A. A. (2023). BMSP-ML: big mart sales prediction using different machine learning techniques. IAES International Journal of Artificial Intelligence, 12(2), 874.

[17]Ratre, S., & Jayaraj, J. (2023, January). Sales prediction using arima, facebook’s prophet and xgboost model of machine learning. In Machine Learning, Image Processing, Network Security and Data Sciences: Select Proceedings of 3rd International Conference on MIND 2021 (pp. 101-111). Singapore: Springer Nature Singapore.

[18]Chen, S., Lan, F., Liu, M., Ye, T., Xiao, K., Zheng, P., ... & Kong, D. (2019, November). Cash flow forecasting model for electricity sale based on deep recurrent neural network. In 2019 IEEE International Conference on Power Data Science (ICPDS) (pp. 67-70). IEEE.

[19]Majhi, B., & Naidu, D. (2021). Differential evolution based radial basis function neural network model for reference evapotranspiration estimation. SN Applied Sciences, 3(1), 56.

[20]Loureiro, A. L., Miguéis, V. L., & Da Silva, L. F. (2018). Exploring the use of deep neural networks for sales forecasting in fashion retail. Decision Support Systems, 114, 81-93.

[21]Piciu, L., Damian, A., Tapus, N., Simion-Constantinescu, A., & Dumitrescu, B. (2018, September). Deep recommender engine based on efficient product embeddings neural pipeline. In 2018 17th RoEduNet conference: networking in education and research (RoEduNet) (pp. 1-6). IEEE.

[22]Krishna, A., Akhilesh, V., Aich, A., & Hegde, C. (2018, December). Sales-forecasting of retail stores using machine learning techniques. In 2018 3rd international conference on computational systems and information technology for sustainable solutions (CSITSS) (pp. 160-166). IEEE.

[23]Bandara, K., Shi, P., Bergmeir, C., Hewamalage, H., Tran, Q., & Seaman, B. (2019). Sales demand forecast in e-commerce using a long short-term memory neural network methodology. In Neural Information Processing: 26th International Conference, ICONIP 2019, Sydney, NSW, Australia, December 12–15, 2019, Proceedings, Part III 26 (pp. 462-474). Springer International Publishing.

[24]Kim, T., & Kim, H. Y. (2019). Forecasting stock prices with a feature fusion LSTM-CNN model using different representations of the same data. PloS one, 14(2), e0212320.

[25]Lu, W., Li, J., Li, Y., Sun, A., & Wang, J. (2020). A CNN‐LSTM‐based model to forecast stock prices. Complexity, 2020(1), 6622927.


Cite This Article
APA Style
Ahmed, R. S., Hasnain, M., Mahmood, M. H., & Mehmood, M. A. (2024). Comparison of Deep Learning Algorithms for Retail Sales Forecasting. IECE Transactions on Intelligent Systematics, 1(3), 112-126. https://doi.org/10.62762/TIS.2024.300700

Article Metrics
Citations:

Crossref

0

Scopus

0

Web of Science

0
Article Access Statistics:
Views: 363
PDF Downloads: 44

Publisher's Note
IECE stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions
IECE or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
IECE Transactions on Intelligent Systematics

IECE Transactions on Intelligent Systematics

ISSN: 2998-3355 (Online) | ISSN: 2998-3320 (Print)

Email: [email protected]

Portico

Portico

All published articles are preserved here permanently:
https://www.portico.org/publishers/iece/

Copyright © 2024 Institute of Emerging and Computer Engineers Inc.