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Open Journal of Business Entrepreneurship and Marketing

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Enhancing Sales Forecasting Accuracy through DBSCAN Clustering and Ensemble Modeling Techniques.
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Affiliations

1 Department of Electrical and Electronic Engineering, Ahsanullah University of Science and Technology, 141 & 142, Love Road, Tejgaon, Dhaka, 1208, Bangladesh

Author's Details

Name: Hasan Mahmud Sozib

Email: sozib2019@gmail.com

Department: Department of Electrical and Electronic Engineering

Affiliation Number: 1

Address: 141 & 142, Love Road, Tejgaon, Dhaka, 1208, Bangladesh

Abstract
This study aims to enhance sales forecasting accuracy by integrating clustering techniques with ensemble predictive modeling. The primary objectives include identifying distinct sales patterns and developing a robust forecasting model that leverages these insights. The analysis utilized a dataset of weekly sales transactions, employing the DBSCAN algorithm for clustering to uncover underlying sales patterns. Subsequently, various regression techniques, including Linear Regression, Random Forest Regression, and Gradient Boosting Regression, were applied. The results from these models were integrated into an updated ensemble model, which demonstrated improved predictive performance. The ensemble model achieved a Mean Absolute Error (MAE) of 0.516 and an R-squared value of 0.993, significantly outperforming traditional regression models. The clustering results, visualized through Principal Component Analysis (PCA), provided valuable insights into customer behavior and sales trends, allowing for more accurate forecasts. These findings suggest that integrating advanced analytics into sales forecasting can lead to better strategic decision-making. This study underscores the significance of combining clustering and ensemble modeling techniques in sales forecasting. By capturing complex sales patterns and improving predictive accuracy, organizations can optimize their operational strategies and enhance overall business performance. The research contributes to the growing body of lite...

Keywords: 

Sales forecasting-DBSCAN-Ensemble Modeling-Predictive Analytics-Machine Learning-Regression techniques

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