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Information Journal Paper

Title

A voting-based hybrid machine learning model for predicting backorders in the supply chain

Pages

  194-213

Abstract

 Purpose: Backorder prediction is one of the most basic challenges in supply chains which may have a direct impact on operational costs, inventory levels and customer satisfaction. The main objective of this study is to come up with a voting based hybrid Machine Learning (ML) model for prediction of backorder that will enhance the accuracy of prediction.Methodology: In this study, an attempt was made to use hard and soft voting models based on XGBoost, CatBoost, Random Forest and LightGBM with model weights optimized through Optuna. The dataset used includes orders, inventory levels, supplier performance and other related features. To reduce data imbalance, the ADASYN method was used and also optuna parameter tuning was used to find the optimal model settings. The RFECV method was also used to identify key features affecting backorders.Findings: The soft voting model with accuracy of 0.9524 yielded the best performance when predicting backorders over all other individual ML models considered in this study. Moreover, inventory level related variables, supplier performance and demand predictability were also identified as most important in causing the occurrence of backorders. The proposed model was compared with other traditional methods and it was found that by using robust models in a voting framework, the forecast accuracy can also be improved.Originality/Value: The results indicate that the use of voting-based hybrid ML  model can be a good mechanism for enhancing backorder prediction. This model helps organizations to more accurately manage order flow and their associated costs. Future research is suggested to use more advanced feature selection and optimization techniques such as genetic algorithms and deep neural networks to achieve better model performance.

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