Measures of Central Tendency: Mean, Median and Mode
Pharmacy stores sales prediction
1. 1Final Project For Lviv Data Science Summer School | August, 2 2018
P10 - Pharmacy Stores Sales Prediction
Final Project For Lviv Data Science Summer School
Our team:
Alexander Kyriy, Cristhian Tito Galvez
Darya Perekosova, Ozge Yucel
2. 2Final Project For Lviv Data Science Summer School | August, 2 2018
Our Tasks
• Nowadays (problem we resolve):
sales of each store are predicted
by store manager
• Create predictive model that
forecast sales for up to 2 weeks in
advance
• Understand factors that have
highest influence on predicted
sales to help store managers drive
the sales (and have their extra-
bonuses J)
3. 3Final Project For Lviv Data Science Summer School | August, 2 2018
Main Challenges
• Our first project in Forecasting and Machine Learning
• No one from our team doesn’t code on daily basis – we only start coding
in this project
• To force the code works
4. 4Final Project For Lviv Data Science Summer School | August, 2 2018
And we create this monster-machine!!!
5. 5Final Project For Lviv Data Science Summer School | August, 2 2018
Our approach
We…
• Created from scratch J and followed machine learning pipeline
• Split inside the team for trying different approaches and different
languages
• Run a little competition between Python and R
• Used in R: time-series and XGBoost with Linear Regression
• Used in Python: Linear Regression and Random Forest Regression
6. 6Final Project For Lviv Data Science Summer School | August, 2 2018
Our Winner
• Random Forest Regression in
Python - it works! J and have the
least error
• Root Mean Square Percentage
Error (RMSPE) is 12.5%
7. 7Final Project For Lviv Data Science Summer School | August, 2 2018
Business Outcomes
The most important factors
• Assortment type C makes more
sales
• Short-term promo works better
then long-term promo (continuing
promotion)
8. 8Final Project For Lviv Data Science Summer School | August, 2 2018
Summary
• Working model that predict sales for up to 2 weeks in advance (RMSPE
0.125)
• Sales managers can focus on promo activities and not spend time for
“manual” forecasts
• Our customer can control promotions and competitors in a much more agile
and precise way
9. 9Final Project For Lviv Data Science Summer School | August, 2 2018
Our Key Learnings
Even business analysts can code!