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Intelligent Forecasting & Inventory Management System

An end-to-end Data Science + Machine Learning solution designed to optimize retail and supply chain operations through demand forecasting, customer segmentation, and inventory optimization.


Project Overview

This project leverages historical sales data to build a smart inventory management system that:

  • Forecasts future demand using advanced ML/DL models
  • Segments customers and products for targeted insights
  • Recommends products using collaborative filtering
  • Optimizes inventory to reduce cost and prevent stockouts
  • Visualizes insights via an interactive Power BI dashboard

Business Impact

  • 📉 15–20% reduction in holding costs
  • 📦 25% reduction in stockouts
  • 50% cost optimization using linear programming (simulation-based)

📊 Dataset

  • Source: Kaggle Superstore Sales Dataset
  • Size: ~2,800 rows (sample used for demo)
  • Features: Sales, Customers, Products, Regions, Dates

🧠 Key Features

🔹 Data Cleaning & EDA

  • Missing value handling
  • Trend analysis (monthly, weekly, regional)
  • Top customers & products
  • RFM (Recency, Frequency, Monetary) segmentation

🔹 Demand Forecasting

Implemented and compared multiple models:

  • Linear Regression (baseline)
  • LSTM (Deep Learning sequence model)
  • Prophet (seasonality-aware, best performer)

📌 Best Model: Prophet (MAE ≈ 850)


🔹 Clustering & Segmentation

  • K-Means clustering for product segmentation
  • Insights based on price vs. sales volume

🔹 Recommendation System

  • Collaborative filtering
  • Personalized product suggestions

🔹 Inventory Optimization

  • Linear Programming (SciPy linprog)
  • Economic Order Quantity (EOQ)
  • Cost minimization with constraints

📌 Example:

  • Optimal Inventory: 199 units
  • Cost reduced from $400 → $196/month

🔹 Visualization Dashboard

  • Built using Power BI
  • Includes:
    • KPIs
    • Forecast trends
    • Inventory alerts
    • Customer insights

🔹 Automated Reporting

  • Generates PDF reports with insights, charts, and tables

🛠️ Tech Stack

Languages & Libraries

  • Python (Pandas, NumPy)
  • Scikit-learn
  • TensorFlow / Keras
  • Prophet
  • SciPy

Visualization

  • Matplotlib, Seaborn
  • Power BI

Environment

  • Jupyter Notebook / Google Colab

📂 Project Structure

same as shown in github main branch


⚙️ Installation & Setup

1️⃣ Clone Repository

git clone https://github.com/yourusername/intelligent-forecasting-inventory.git
cd intelligent-forecasting-inventory

2️⃣ Create Virtual Environment

python -m venv venv
source venv/bin/activate   # Windows: venv\Scripts\activate

3️⃣ Install Dependencies

pip install -r requirements.txt

▶️ Usage

Run modules step-by-step:

🔹 1. Data Cleaning & EDA
jupyter notebook eda.ipynb
🔹 2. Forecasting
jupyter notebook forecasting.ipynb
🔹 3. Clustering & Recommendations
jupyter notebook insights.ipynb
🔹 4. Inventory Optimization
jupyter notebook optimization.ipynb
🔹 5. Generate Report

python generate_report.py

📈 Sample Results
📊 Monthly Sales Peak: $5,205
📅 Forecast (Next Month): ~$5,500
📉 Cost Optimization: 50% savings
👥 Customer Segment: Majority "Champions"
📸 Screenshots

Add result in .csv formet

Monthly Trends Forecast Graph Dashboard Overview Inventory Optimization 🔗 Project Link

👉 Notebook: https://github.com/nawalkumar/Inventory-management-system-Data-Cleaning-ML-AI-/blob/main/Intelligent_Forecasting_and_Inventory_Management_System.ipynb

🤝 Contributing

Contributions are welcome!

Fork the repo Create a new branch Commit changes Open a Pull Request 📜 License

MIT License

📬 Contact

📧 Email: nawalkumar4810167@gmail.com

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