Performance comparison of machine learning and deep learning models for supply chain tier order quantity prediction: Emphasis on tree-based and CNN-BILSTM approaches

Kyoungjong Park

Article ID: 9683
Vol 8, Issue 14, 2024

VIEWS - 19 (Abstract) 17 (PDF)

Abstract


This study conducts a comparative analysis of various machine learning and deep learning models for predicting order quantities in supply chain tiers. The models employed include XGBoost, Random Forest, CNN-BiLSTM, Linear Regression, Support Vector Regression (SVR), K-Nearest Neighbors (KNN), Multi-Layer Perceptron (MLP), Recurrent Neural Network (RNN), Bidirectional LSTM (BiLSTM), Bidirectional GRU (BiGRU), Conv1D-BiLSTM, Attention-LSTM, Transformer, and LSTM-CNN hybrid models. Experimental results show that the XGBoost, Random Forest, CNN-BiLSTM, and MLP models exhibit superior predictive performance. In particular, the XGBoost model demonstrates the best results across all performance metrics, attributed to its effective learning of complex data patterns and variable interactions. Although the KNN model also shows perfect predictions with zero error values, this indicates a need for further review of data processing procedures or model validation methods. Conversely, the BiLSTM, BiGRU, and Transformer models exhibit relatively lower performance. Models with moderate performance include Linear Regression, RNN, Conv1D-BiLSTM, Attention-LSTM, and the LSTM-CNN hybrid model, all displaying relatively higher errors and lower coefficients of determination (R²). As a result, tree-based models (XGBoost, Random Forest) and certain deep learning models like CNN-BiLSTM are found to be effective for predicting order quantities in supply chain tiers. In contrast, RNN-based models (BiLSTM, BiGRU) and the Transformer show relatively lower predictive power. Based on these results, we suggest that tree-based models and CNN-based deep learning models should be prioritized when selecting predictive models in practical applications.


Keywords


supply chain; order prediction; deep learning; machine learning; hybrid model; supply chain tier

Full Text:

PDF


References


Aamer, A. M., Yani, L. P. E., & Priyatna, I. M. A. (2021). Data analytics in the supply chain management: Review of machine learning applications in demand forecasting. Operations and Supply Chain Management, 14(1), 1–13. http://doi.org/10.31387/oscm0440281.

Ahn, H. I., Song, Y. C., Olivar, S., Mehta, H., & Tewari, N. (2024). GNN-based probabilistic supply and inventory predictions in supply chain networks. arXiv preprint arXiv:2404.07523.

Ashraf, M., Eltawil, A., & Ali, I. (2024). Disruption detection for a cognitive digital supply chain twin using hybrid deep learning. Operational Research, 24, 23. https://doi.org/10.48550/arXiv.2309.14557.

Ayus, I., Natarajan, N., & Gupta, D. (2023). Comparison of machine learning and deep learning techniques for the prediction of air pollution: A case study from China. Asian Journal of Atmospheric Environment, 17(4), 1–22. https://doi.org/10.1007/s44273-023-00005-w.

Cannas, V. G., Ciano, M. P., Saltalamacchia, M., & Secchi, R. (2024). Artificial intelligence in supply chain and operations management: a multiple case study research. International Journal of Production Research, 62(9), 3333–3360. DOI:10.1080/00207543.2023.2232050.

Chen, T., & Guestrin, C. (2016). XGBoost: A scalable tree boosting system. In Proceedings of the 22nd ACM SIGKDD International Conference on Knowledge Discovery and Data Mining,785–794. https://dl.acm.org/doi/pdf/10.1145/2939672.2939785.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson Education.

Culot, G., Podrecca, M., & Nassimbeni, G. (2024). Artificial intelligence in supply chain management: A systematic literature review of empirical studies and research directions. Computers in Industry, 162, 103813. DOI:10.1016/j.compind.2024.104132.

Douaioui K, Oucheikh R, Benmoussa O, & Mabrouki C. (2024). Machine learning and deep learning models for demand forecasting in supply chain management: a critical review. Applied System Innovation. 7(5):93. https://doi.org/10.3390/asi7050093.

Foumani, N. M., Miller, L., Tan, C. W., Webb, G. I., Forestier, G., & Salehi, M. (2024). Deep learning for time series classification and extrinsic regression: A current survey. ACM Computing Surveys, 56(9), Article 217. https://doi.org/10.48550/arXiv.2302.02515.

Goodfellow, I., Bengio, Y., & Courville, A. (2016). Deep Learning. MIT Press.

Greff, K., Srivastava, R. K., Koutník, J., Steunebrink, B. R., & Schmidhuber, J. (2017). LSTM: A search space odyssey. IEEE Transactions on Neural Networks and Learning Systems, 28(10), 2222–2232. https://doi.org/10.48550/arXiv.1503.04069.

Husna, A. U., Amin, S. H., & Ghasempoor, A. (2023). Demand forecasting using machine learning and deep learning approaches in the retail industry: A comparative study. In Industrial Engineering in the Covid-19 Era (249–264). Springer, Cham. https://doi.org/10.1007/978-3-031-25847-3_24.

Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: Extending the supply chain resilience angles towards survivability. International Journal of Production Research, 58(10), 2904–2915. https://doi.org/10.1080/00207543.2020.1750727.

Jahin, M. A., Shahriar, A., & Al Amin, M. (2024). MCDFN: Supply chain demand forecasting via an explainable multi-channel data fusion network model. arXiv, 2405.15598. https://doi.org/10.48550/arXiv.2405.15598.

Jozefowicz, R., Zaremba, W., & Sutskever, I. (2015). An empirical exploration of recurrent network architectures. In Proceedings of the 32nd International Conference on Machine Learning (2342–2350). https://dl.acm.org/doi/10.5555/3045118.3045367.

Kassa, A., Kitaw, D., Stache, U., Beshah, B., & Degefu, G. (2023). Artificial intelligence techniques for enhancing supply chain resilience: A systematic literature review, holistic framework, and future research. Computers & Industrial Engineering, 186, 109714. DOI:10.1016/j.cie.2023.109714.

Kouvelis, P., Chambers, C., & Wang, H. (2006). Supply chain management research and production and operations management: review, trends, and opportunities. Production and Operations Management, 15(3), 449–469. https://doi.org/10.1111/j.1937-5956.2006.tb00257.x.

LeCun, Y., Bengio, Y., & Hinton, G. (2015). Deep learning. Nature, 521(7553), 436–444. DOI:10.1038/nature14539.

Lourenço, V. M., Ogutu, J. O., Rodrigues, R. A., Posekany, A., & Piepho, H. P. (2024). Genomic prediction using machine learning: A comparison of the performance of regularized regression, ensemble, instance-based and deep learning methods on synthetic and empirical data. BMC Genomics, 25(1), 152. https://doi.org/10.1186/s12864-023-09933-x.

Pietukhov, R., Ahtamad, M., Faraji-Niri, M., & El-Said, T. (2023). A hybrid forecasting model with logistic regression and neural networks for improving key performance indicators in supply chains. Supply Chain Analytics, 4, 1–9. https://doi.org/10.1016/j.sca.2023.100041.

Prokhorenkova, L., Gusev, G., Vorobev, A., Dorogush, A. V., & Gulin, A. (2018). CatBoost: Unbiased boosting with categorical features. In Advances in Neural Information Processing Systems, 31. https://doi.org/10.48550/arXiv.1706.09516.

Rolf, B., Beier, A., Jackson, I., Müller, M., Reggelin, T., Stuckenschmidt, H., & Lang, S. (2024). A review on unsupervised learning algorithms and applications in supply chain management. International Journal of Production Research, 62(15), 1–51. https://doi.org/10.1080/00207543.2024.2390968.

Sangeetha, J. M., & Alfia, K. J. (2024). Financial stock market forecast using evaluated linear regression based machine learning technique. Measurement: Sensors, 31, 100950. https://doi.org/10.1016/j.measen.2023.100950.

Schmidhuber, J. (2015). Deep learning in neural networks: An overview. Neural Networks, 61, 85–117. https://doi.org/10.48550/arXiv.1404.7828.

Singh, P. K. (2023). Digital transformation in supply chain management: Artificial Intelligence (AI) and Machine Learning (ML) as catalysts for value creation. International Journal of Supply Chain Management, 12(6), 57–63. DOI:10.59160/ijscm.v12i6.6216.

Stranieri, F., & Stella, F. (2022). Comparing deep reinforcement learning algorithms in two-echelon supply chains. arXiv preprint, arXiv:2204.00000. https://doi.org/10.48550/arXiv.2204.09603.

Tirkolaee, E. B., Sadeghi Darvazeh, S., Mansoori Mooseloo, F., & Rezaei Vandchali, H. (2021). Application of machine learning in supply chain management: A comprehensive overview of the main areas. Mathematical Problems in Engineering, 2021, 1–14. DOI:10.1155/2021/1476043.

Vaswani, A., Shazeer, N., Parmar, N., Uszkoreit, J., Jones, L., Gomez, A. N., Kaiser, Ł., & Polosukhin, I. (2017). Attention is all you need. In Advances in Neural Information Processing Systems (5998–6008). http://arxiv.org/abs/1706.03762.

Yang, M., Lim, M. K., Qu, Y., Ni, D., & Xiao, Z. (2023). Supply chain risk management with machine learning technology: A literature review and future research directions. Computers & Industrial Engineering, 175, 108859. DOI: 10.1016/j.cie.2022.108859.

Zohdi, M., Rafiee, M., Kayvanfar, V., & Salamiraad, A. (2022). Demand forecasting based machine learning algorithms on customer information: An applied approach. International Journal of Information Technology, 14(3), 1–12. DOI:10.1007/s41870-022-00875-3.




DOI: https://doi.org/10.24294/jipd9683

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Kyoungjong Park

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.