Loss Profit Estimation Using Temporal Association Rule Mining

Temporal association rule mining is a data mining technique in which relationships between items which satisfy certain timing constraints can be discovered. This paper presents the concept of temporal association rules in order to solve the problem of classification of inventories by including time expressions into association rules. Firstly, loss profit of frequent items is calculated by using temporal association rule mining algorithm. Then, the frequent items in particular time-periods are ranked according to descending order of loss profits. The manager can easily recognize most profitable items with the help of ranking found in the paper. An example is illustrated to validate the results. KEywoRdS ABC Classification, Data Mining, Inventory Management, Loss Profit, Temporal Association Rule Mining

[1]  Shamik Sural,et al.  Association rule for purchase dependence in multi-item inventory , 2010 .

[2]  S. K. Goel,et al.  Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment , 2011 .

[3]  C. Jaggi,et al.  Retailer Ordering Policy for Deteriorating Items with Initial Inspection and Allowable Shortage Under the Condition of Permissible Delay in Payments , 2011 .

[4]  Ricardo Ernst,et al.  MULTI-ITEM CLASSIFICATION AND GENERIC INVENTORY STOCK CONTROL POLICIES , 1988 .

[5]  Chandra K. Jaggi,et al.  Credit financing in economic ordering policies for defective items with allowable shortages , 2013, Appl. Math. Comput..

[6]  Raymond Chi-Wing Wong,et al.  Data Mining for Inventory Item Selection with Cross-Selling Considerations , 2005, Data Mining and Knowledge Discovery.

[7]  Chandra K. Jaggi,et al.  Economic order quantity model for deteriorating items with imperfect quality , 2011 .

[8]  D. Clay Whybark,et al.  Implementing multiple criteria ABC analysis , 1987 .

[9]  Ikou Kaku,et al.  A new algorithm of inventory classification based on the association rules , 2008 .

[10]  R L Schwaller.  EOQ UNDER INSPECTION COSTS , 1988 .

[11]  Evan L. Porteus.  Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction , 1986, Oper. Res..

[12]  Meir J. Rosenblatt,et al.  Economic Production Cycles with Imperfect Production Processes , 1986 .

[13]  M. K. Salameh,et al.  Economic production quantity model for items with imperfect quality , 2000 .

[14]  Bernard Roy,et al.  Multi-item inventory control: A multicriteria view , 1995 .

[15]  Pradip Kumar Bala.  Data Mining for Retail Inventory Management , 2008, World Congress on Engineering.

[16]  D. Clay Whybark,et al.  Multiple Criteria ABC Analysis , 1986 .

[17]  Ming-Syan Chen,et al.  Progressive Partition Miner: An Efficient Algorithm for Mining General Temporal Association Rules , 2003, IEEE Trans. Knowl. Data Eng..

[18]  Ikou Kaku,et al.  A new approach of inventory classification based on loss profit , 2011, Expert Syst. Appl..

[19]  Pradip Kumar Bala,et al.  Purchase-driven Classification for Improved Forecasting in Spare Parts Inventory Replenishment , 2010 .